Risk Management Analysis Of CNMC's Zambia Direct Investment Project

In recent years,with the increasing support from government and the tight supply of China's resources,more and more enterprises start to exploit overseas mineral resources.Although domestic mineral resources enterprises made some achievements in foreign direct investment(FDI)after many years' brutal market competition,they more or less face the risk of a matter of life and death due to political and economic factors in the recipient countries and regions which have adverse effects on the return on FDI.Based on the worries of risk issues,this article is of great significance to the research of the risk management for the FDI of China mining enterprises.This article starts with theanalysis of current situation of direct investment risk management to explore the potential and existing issues in foreign direct investment risk management.Taking China Nonferrous Metal Mining Group's Zambia projectas the main subject,it summarizes,identifies,evaluates,and proposes preventive measures for existing risk factors in the foreign direct investment of China Nonferrous Metal Mining Group.Combining the characteristics of CNMC's FDI projects,this paper sums up 7 categories of risks including political,legal,security,cultural,financial,operation,and market risks,and22sub-categories of risk.Then,by using the evaluation method of risk matrix based on analytic hierarchy process,it focus on the comprehensive risk evaluation of Zambia project,comes up with the risk matrix pattern,and finally proposes the corresponding risk control measures for Zambia project based on the evaluation findings and the actual situation,with an expectation to provide reference and support to Zambia direct investment behaviors in the future.