The Risk Analysis For Overseas Engineering Projects

With the implementation of China’s " going out " strategy, more and moredomestic construction enterprises go out of the country by international projects, Inthe top225international contractors which ENR select the Chinese contractors’number is increasing year by year. It is full of all kinds of risk in the process ofinternational project contracting, project complexity, cross-regional, high technicalrequirements are the test to our country enterprises, especially in the current financialcrisis, the international political and economic situation changing and unpredictable,international project contracting is faced with more risks. Therefore, how toeffectively carry out the risk management and control of international engineeringproject has become an important topic which Chinese enterprises are facing.This paper mainly take a large petrochemical engineering EPC project of SaudiArabia as the research object, aiming at the risk management in the project, wereanalyzed from two aspects of theory and empirical. The main content of this paper isto review the project risk, project risk management and international project riskmanagement theory, focuses on the analysis of risk factors existing in this project,through a certain method to analysis the risk factors in the project, and put forward thecorresponding risk response measures on the analysis results.The full text is divided into five chapters; the specific contents are as follows:The first chapter analyzes the research background and meaning, summarizes thepresent situation on the research at home and abroad, and then briefly introduces theresearch objectives and methods, research ideas and framework of this article.The second chapter is an overview of risk management, describes the emergenceand development of the risk, introduces project risk management content and methodetc. Engineering project risk is an objective existence, it exists in anywhere. Riskmanagement should be run through the whole process of project implementation fromthe beginning.The third chapter describes the theory of international project risk management, analyzes the main risk factors in the international engineering, puts forward theresearch method of risk factors, the principal component analysis method and analyticnetwork process, and describes briefly the risk prevention technology.The fourth chapter describes the basic situation of a large petrochemicalengineering EPC project in Saudi Arabia; analysis the risk factors existing in thisproject. The collected data were analyzed by SPSS software, then, the correspondingrisk response measure on the analysis results is presented.The fifth chapter summarizes the experience and lessons of the project, putsforward some constructive suggestions for the enterprises of our country.In this paper, through the analysis of risk factors of Saudi petrochemical project,explore the implicit relevance of risk factors, provide a basis for the risk managementto predict and control the engineering project risk rapidly. By summarizing theexperiences and lessons of the project, provide significant help for Chineseinternational project enterprises to contract international engineering project.