A Study On Risk Management In Project Finance

Project Finance, as a new financing tool, was emerged in the international capital markets in 1970s and has developed into an efficient wide-used financing method in infrastructure's construction. In the mid of 1980s, China introduced Project Finance for the first time. As China's capital market opens more widely to the outside world, Project Finance gains rapid development and plays important roles in infrastructure financing. But, it also has its demerits. Long-time negotiation, a wide variety of involved parties and complicated structure lead it to being exposed to many risks and so that it is asked to implement rigid supervision and risk management during the whole financing course. But in China, Project Finance is still at the starting stage and leaves us many things to explore, so people, especially those who are affected by planned-economics lack risk consciousness. In most cases, people thinks risk arrangement or risk control as risk management by mistake, so it worth exploring the risk management of Project Finance in China and it is also very meaningful to analyze and solve our current problems in risk management of Project Finance.This article mainly aims at constructing basic model of risk management for project finance in China and at how to improve the present situation of risk management in our country. The full article altogether divides into five chapters, main content as follows:On the basis of mature risk management experience for project finance and considering the Chinese national condition (macroscopic policy environment, manage theory and management pattern, market environment and so on), the first chapter "the introduction" has carried on the analysis of the basic condition and the existence questions of the Chinese project financing risk management, then pointed out the necessity of risk management for project finance, and proposed this article studies goal and overall construction.The second chapter "the theory basis and design consideration of projectfinancing risk management" had pointed out the bare bone of project financing risk management in China, which is complex system engineering. On the basis of the basic concept of project financing and considering the characteristics of risk management, these chapters proposed three organic entities (risk identification, the risk assessment and risk arrangement) are the bare bone of project financing risk management in China. This chapter is the foundation of the whole article.On the basis of the bare bone of project financing risk management in the second chapter and unifying typical cases in our country project finance, the third chapter "the system model of project financing risk management" in the risk identification aspect, analyzed six risks of project finance, considered the financing factors and non-financing factors, and established the system model of project financing risk assessment; In the risk assessment aspect, it separately established dynamic analysis quota appraisal model for the financing factors and the FCE fuzzy synthesis appraisal model for the non-financing factors; Finally this chapter proposed taking the credit guarantee as the main form risk processing.The fourth chapter "the solution for the present problems of project financing risk management present in China" pointed out the reason why the development of risk management in our country was slow is that there are many problems in this domain and proposed the solution to them.The last chapter draws a conclusion of all, summing up what is creative in this article, and suggests what should be done to further improve this study.