A Study Of Integration Risk Management At The Execution Stage Of Overseas EPC Infrastructure Projects

Integration risk management (IRM) has gradually grown into a new trend and new direction of risk management. However, international study of IRM and its application in the field of EPC infrastructure projects are still at a starting stage. Therefore, a study of how to use IRM method to handle various risks in overseas EPC infrastructure projects is very helpful for Chinese contractors to develop and have a foothold at the international EPC infrastructure project market.This thesis firstly gives a summary of11risk characteristics including diversity and multi-hierarchy, etc. at the execution stage of the overseas EPC infrastructure project on the basis of the project characteristics appeared during the execution stage of such projects. Thus, the concept of integration risk management is drawn from thereof and the necessity of IRM is pointed out.Secondly, this thesis, against the occurrence of risks during the execution of an overseas EPC infrastructure project, puts forward the IRM process for such a project at its execution stage. The said process consists of6sections, that is, risk management plan, risk identification, risk analysis, risk treatment, risk monitoring and control and risk management review. While explaining the process, the method of check list is applied to get the preliminary identification of various risks in the execution stage of an overseas EPC infrastructure project. Consequently, a risk category and a risk list are obtained. Totally,6kinds of risk including technical risk and interested-party risk,29pieces of specific risk factor such as cost overrun and design fault, etc. and28risk origins including lack of cash flow have been identified. Based on the risk identification, the thesis adopts analytic hierarchy process (AHP) to analyze the risk in the overseas EPC infrastructure project and makes the AHP model of risk assessment.Thirdly, in order to make the6sections of the risk management process move in circles so as to realize an overall risk management in a sustainable and effective manner, this thesis further put forward the IRM system framework and management measures for the execution stage of the overseas EPC infrastructure project. The system framework includes such5elements as risk management object, risk management organization, risk management system approach, risk management information system and risk management culture.Finally, the thesis makes an analysis of the major risks at the execution stage of an overseas light rail project undertaken by a Chinese contractor, presents the risk list and assesses the risks by means of expert scoring method. In addition, a two-dimensional risk diagram is also provided. To well control these risks, the thesis proposes the united IRM organization form and the united IRM realization mode.In this thesis, the IRM process, system framework and control measures are discussed and the theoretical methods correspondingly suggested are analyzed and proved. Thus, not only a new thinking and new approach are provided with Chinese contractors to control all kinds of risks in overseas EPC infrastructure projects in an effective way, but also the study of risk management in EPC projects is perfected positively.