Study On Risk Management Of BAPC’s Europe Subsidiary Project

Along with the progress of Going Global strategy,more and more Chinese enterprises develop their business outside of China.As one important manufacturer of Petrochemical & Chemical equipment under China Aerospace Science and Technology Corporation,BAPC plan to establish Europe Subsidiary in Germany for the need of development and compliance to the strategy.Since BAPC have no experience on overseas subsidiary building,the risk management would be a big problem for them.By studying Chinese and foreign literature on risk management of foreign direction investment project management,and taking advantage of Enterprise Risk Management Theory,this paper studies risk management of BAPC Europe subsidiary project.It analyzes the risks,external and internal,which are countered during projects,and the cause of the risks.It suggests that risk management should be focused on more for Chinese enterprises,to reduce the impact.Then the paper studies risk recognition of BAPC Europe subsidiary project,and recognizes the key risks,including rate currency risk,market risk,China policy risk,finance risk,human resource risk and operation risk,and builds the assessment system.Information,collected with professional questionnaires,is quantified and calculated with the help of Analytic Hierarchy Process and Fuzzy Comprehensive Appraisal,to get the risk sequence construction and total risk value.It shows the risk of BAPC Europe subsidiary project is lower-middle.At last,based on Enterprise Risk Management Theory,the paper proposes strategies,such as risk reduction and risk avoiding,and measures,such as rate lock and localized management,to treat risks,and proposes support measures of the strategies.Then it proposes safeguard measures,such as risk management training,integrated work system,full participation and stimulative payment system,for BAPC’s consideration.