Research On Investment Risk Management And Control Measures In Ethiopia Project Of Hunan HB Company

With the improvement on the ’conditions of policy background,market environment and strength for Chinese enterprises to invest internationally,the private manufacturing enterprises with advantage of production capacity,are gradually conducting international investment in Africa.However,in comparison with western enterprises,Chinese enterprises lack experience of international investment,plus riskier investment in African market,therefore the investment target to be achieved through the investment project is uncertain.In this regard,the research on the investment risk management and control measures at an earlier stage of international investment project exerts a major influence on lowering risk rate of projects as well as ensuing profit returning rate of investment.This thesis provides an innovative way of thinking for enterprise directors to manage and control the risks of international project by analyzing the potential risks faced by international investment projects both internally and externally,as well as the comprehensive environment in combined with PEST and SWOT,to bring the countermeasures and safeguard measures of risk management and control into practice ahead of the project investment.Specifically speaking,this thesis firstly summarizes studies relevant on introduction of international investment risk,risk of Chinese enterprises investment to Africa and risk management of project investment.Next,it analyzes the situation of Hunan HB Company,related industry and Ethiopia Project based on which,it conducts a comprehensive analysis on the macro,external and internal environment with risks by adopting PEST and SWOT methods,meanwhile summary analysis on specific risks and the hazard level of the project are also given.At last,it draws up the countermeasures to manage and control the risks in target in advance of the project based on the above analysis and also proposes relevant safeguard measures to ensure the management and controlling measures can be effectively applied to the practice of lowering risks and keep sustainable operation.Although the conclusions of this thesis are based on the investment environment risk analysis on specific country,enterprise and project,they are also suitable for other Chinese enterprises to study the risk management and control strategies,when they invest in Africa.Although the market of African countries have some investment risk,but more and more enterprises are beginning to pay attention to and carrying out direct investment in Africa is an inevitable trend.Therefore,the studying on risk assessment and control measures in early stage of investment is also the necessary requirement to ensure the successful management of investment projects in the late period.