Research On Risk Management For Sauer-Danfoss Investment Project

With the rapid China economy development, the openness to the outside of theworld to a higher level, more and more foreign companies go to China to set up newenterprise. As one foreign enterprise, in order to implement5-year strategy,Sauer-Danfoss Company decided to invest in China by set up a brand new factory in HY.After the new factory set up, Sauer-Danfoss could meet next5-10years demand inChina market.Company investment project has the character such as long lead time, high capitalinvest, high technical requirements and system integration. During the investmentproject implementation, uncertainties and random factor will exist together with theproject implementation, and changing time to time. In additional, as a foreign companySauer-Danfoss investment project in China are facing acclimatized condition, differentculture background will cause potential cultural conflict. In order to make sure theinvestment project success, we need implement effective risk management to reduceand minimize the loss&impact caused by risk. Base on Sauer-Danfoss HY investmentproject status, implement risk management research. According to establishSauer-Danfoss HY investment project “Risk Management Model”, implement total riskmanagement, that will be very important to Sauer-Danfoss HY investment project.This dissertation, started from the theory of risk management, comprehensivelyrefer to the current research of Project Risk Management in home and abroad, analysizethe necessity to introduce risk management theory to Sauer-Danfoss investment project.In additional, combine the project’s characteristics, project background,3rd partyconsultant application in this project, and the lessons learned from the success andfailure in this project, the dissertation detailed describe that the theory of Project RiskManagement application in this project. After refer and refining core elements of some prevailing project risk management models from home and abroad, the dissertationestablished “Sauer-Danfoss HY Project Risk Management Model”. At the end of thedissertation, Sauer-Danfoss HY investment project is putting into real practice tovalidate the effect of the risk management model. Hopeful this dissertation couldprovide some theoretical and practical template for the Risk Management of the foreigncompany investment project; also could provide some valuable references for other fieldinvestment project risk management.