Study On The Risk Management Research Of International Infrastructure PPP Projects

With the increasing demand for global public services,government fund is in shortage.Long-term effective management methods and risk-sharing mechanisms are also absent in governments,so government departments have begun to look for solutions from market,trying to cooperate with private sectors in providing public service and gradually exploring PPP model.The application of PPP will become a trend around the world.It is important to note many potential risks of PPP though it solves those bottleneck problems like government fund and management.PPP model,when applied improperly,incurs damage to government,private institutions,financial institutions and the general public since multi-party cooperation mechanism is adopted in PPP..If it is improperly applied it will cause damage to the government private institutions financial institutions and the public.It is worth study how to ensure the safe provision of public services and improve the risk management of overseas PPP projects.Addressing risk management of overseas infrastructure PPP projects,following the method of study of combining theory and practice and adopting reference analysis and case study methods,this study has systematic study on PPP project concept,features,categories,risk identification,risk sharing and risk counter-measures.A infrastructure PPP project located in a Middle-East country participated by a Chinese firm is taken as an example for analysis.“Internal Control-Integrated Framework” ERM published by Committee of Sponsoring Organizations of the Treadway Commission(COSO)in 2017 is referenced for analysis and evaluation on case risk management system.The study then proposes optimized recommendation for case risk sharing mechanism.The study shows that,COSO-ERM risk management model,being risk management framework guiding Chinese firms to implement overseas PPP projects,systematically improves the level of PPP project risk management,so it has theoretical value and application value.It provides important reference for Chinese firms to manage risks of overseas PPP projects of similar nature.