World Bank Supervision Grant Project Risk Management

Chinese government has been receiving and applying for the multi-lateral fund from Montreal Protocol to develop the phase-out activities of Ozone Depleting Substance (abbreviated as"ODS"). Taking the grant funding project in China as an example, this essay introduces the background, management mechanism, characteristic, type and objective of the funding project supervised by the World Bank, and analyzes the characteristic of the project's potential risk. Making use of the method of expert interview, the author interviewed with about 30 experts and representatives from more than 10 departments from June to August 2006, identified 20 kinds of potential risks, classified them as four levels and then listed them in a table in accordance with the different project targets, including annual target, sector target and enterprise target. The article also takes into consideration the probability of each risk and its influence on the project targets, regroups the four levels'risks into three groups, then makes qualitative evaluation on the probability and damage.Six pieces of experiences and lessons for project risk management are summarized after the essay demonstrates two cases, one successful case of"construction of chlorofluorocarbon substitute"and another unsuccessful case of"ODS consumption phase-out in Chlorosulphonated Polyolefin production". Afterwards, the author combines his experience in project management with suggestions enquired from the expert interview, and summarizes four kinds of strategies for risk management. The strategies include risk avoidance, risk transfer, risk alleviation and risk self-assumption. The paper places the identified 20 kinds of risks into different strategies and puts forward corresponding specific measures and suggestions for each strategy. In the end, the method of risk supervision and its specific measures are also brought forward to prevent and reduce project risks.