Analysis On Risk Of Yulin 《Urban Golden Bank》 Project And Research On Counter Strategy

Enterprises in China are faced with more fierce challenges from home and abroad since China's entry into WTO. In order to match with the international standards in construction business, the state has taken measures to price the quantity of a project. As a result of this, it is obvious that the gap is getting narrower and narrower between the bid and the actual cost, leaving little or even no profit eventually. It is unavoidable for the decision-makers to pay closer attention to the risk that definitely arouses in the project. Sichuan Huaxia Construction Co, Ltd, founded in 2003, put forward quite a low offer in the bid for Yulin Urban Golden Bank project, without estimating or calculating its potential risk, causing giant unexpected risk to itself. It has been a key to take advantages of principles of risk management to minimize the risk and make profit to the largest extent.This essay, based on principles of risk management, identified the risk, analyzed the causes, and calculated its effect on the project by means of analytic hierarchy process. In addition to the points mentioned above, the essay graded these factors of risk by assessing the risk and therefore put forward a strategy to solve this problem, the research to its management, and achieved the planned goal, completing the project 20 days ahead of the scheduJe and gaining a profit of 543,000 yuan in return..The author researched the problem of risk management in constructionbusiness by analyzing a certain case, suggested solutions to lack of supervision over risk management and listed the analyzed factors of risk clearly, which goes beyond current research.