Risk Management Of ABS Project Financing

The commonly used project financing models have shown their limitations gradually. The occurring of the innovative model, ABS project financing, caters to the market. It will be the orientation of financing development of the future. The risk of ABS project financing will be the study subject in this paper. Because this paper studies risk identification and assessment in order to find some reasonable and feasible countermeasures for the extension and application of this innovative financial instrument.This paper compares asset-backed-securitization with project financing and summarizes the common points of project financing and ABS on financial structure and risk sharing to demonstrate the feasibility and superiority of the combination. Referring to the risk management theory of project management, Multifactor Analysis on ABS project financing consists of risk identification, risk assessment and risk countermeasure. Analysis of the main includes following work:Firstly, the author uses decomposition analysis to identify all the risks from asset quality, environment and ABS three aspects. The key research is ABS risk.Secondly, the paper determines the index system of ABS project financing and uses expert estimation and AHP (Analytic Hierarchy Process) to calculate the weight, then, builds multigrade fuzzy comprehensive appraisal model to evaluate the risk comprehensively.Thirdly, after the risk identification and assessment some countermeasures are put forward from risk avoidance, diversification, transfer and loss control four aspects. Especially, the author uses some financial and non-financial instruments to manage ABS risk.Finally, there is empirical analysis about risk management of ABS project financing on Zhuhai highway project.