Investment And Financial Risk Management Of Infrastructure Project Based On Hall’s Three-Dimensional Structure

Infrastructure projects widely in all areas of society, plays an important role in national economic development. It is the protection of the sustainable development of society. With economic development, infrastructure building needs to expand, the demand for funds will also increase accordingly, market oriented investment and financing mode was introduced in the infrastructure market. Bank is one of the principal investors in the financing for infrastructure projects, play a pivotal role in the process of infrastructure construction and operation. The risk management of infrastructure investment and financing can’t be ignored. Hall’s three-dimensional structure of the study complex systems, a systems engineering approach, can be a good method to research for risk management about investment and financing issues in infrastructure projects. This paper analyzes the definition and characteristics of the infrastructure, and summarizes the mode of investment and financing of infrastructure projects. Firstly, this paper introduces comprehensively the theory Hall’s three-dimensional structure, basic of systems engineering and technical, about the main contents and the application. And this paper introduces the content and the evolution of risk management theory, a review of enterprise risk management theory. This paper constructs a mode about investment and financing of risk management in infrastructure projects based on the Hall’s three-dimensional structure. In the time dimension, according to the law of the infrastructure projects of its own life cycle is divided into the planning phase, construction phase, operation phase, and the transfer phase. Investment and financing of risk management at every phase in infrastructure projects can follow the risk identification, risk assessment, risk response steps, combined with the external environment within the project, explicit objectives, and improve communication, strict supervision. By the methods of stress testing, scenario analysis, risk avoidance, loss prevention, risk transfer, risk retention and insurance, the banks can provide expertise to support. Finally, this paper analyzes and applies the mode for the financial support for railway investment and financing projects from China Development Bank Shanxi Branch, based on Hall’s three-dimensional structure.