Hydropower Eight Innings Transnational Business Risk Prevention Study

In recent years, Sinohydro Engineering Bureau VIII have regarded our international business as a new profit growth point, but the international market has a great difference with respect to the domestic market in competitive conditions, contract models, risk factor and management philosophy. Sinohydro Engineering Bureau VIII face a lot of risks and have the urgent need to take scientific preventive measures to deal with the international challenges. On the base of the characterostics of the international hydropower industry market, in combination with the performance of international operating risks management of Sinohydro Engineering Bureau VIII, and with the application of engineering risk management measures, this paper studies in depth the bureau's multinational operating risks faced by tender, internal risk and foreign-exchange risk.In terms of international tender for risk, this paper firstly uses surveys and expert scoring method and the Monte Carlo method for risk assessment; and then through the establishment of the comprehensive assessment model of the engineering tender risks for the tender staff to master overall risk of tenders. Finally this paper advises using imbalance quotations, control of the overall risks, risk transfer, risk avoidance, risk use, reserve backup measures and other management tools to achieve preventative objectives. In view of the risk of cross-border cooperation of the bureau, this paper first in-depth analyzes the characteristics of the various models of cooperation and suggests that both the control of the risk and the improvement of enterprises competitiveness can be achieved through sound contract management, the construction of dynamic and the internal partnership. Moreover, this paper argues that the construction of the foreign exchange risk prevention system, the whole process prerention, use of financial instruments and enhancement of the ability to use decisive variables can prevent exchange risks. This paper presents the risk prevention measures actual closely enterprises, have a strong application value.