The Risk Management Research Of Mineral Resources Investment In Australian Of An-steel Group Corporation

With the development of economy,mineral resources play an increasingly important role in the international social arena.Demand for mineral resources in China is still huge,and the contradiction between supply and demand is still outstanding.Australia shares rich mineral resources,sound laws,high-end technologies,and preferential policies,thus has attracted many Chinese enterprises like the An-steel Group Corporation(referred to as the group below)to invest mineral resources.In the mean time,Chinese companies have encountered many problems during investing in Australia.Therefore,it is a worth topic deserving deeply study to understand the investment environment in Australian,identify the risks in the investment process,and figure out measures to deal with potential risks.Guided by the basic theories of Overseas Investment and Risk Management,this paper integrates the current state of Chinese enterprises when investing overseas,and analyze the investment environment of mineral resources in Australia,as well as the existing investing problems of the group.Citing the Risk Management theory,the group’s investment risk in mineral resources in Australia is analyzed item by item,and divided into five first-level indicators: political and legal risks,economic risks,social risks,technical risks and operational risks,which are subdivided into nineteen second-level indicators.The Analytic Hierarchy Process is further adopted to identify and assess the risks faced,and a comprehensive evaluation model is established.The investment in mineral resources in Australia is broken down into five major risk indices: the highest risk,higher risk,general risk,lower risk and the lowest risk.According to the principle of maximum subordination,the investment risk of mineral resources in Australia is determined,and a targeted response strategy is proposed.Based on the author’s professional knowledge and over-ten-years audit experience in the state-owned enterprise of China,especially the audit experience of steel and mining companies,this paper provides certain reference for the group and other Chinese enterprises during investing in Australia.Through the establishment of the risk assessment model,the research obtained specific results,which not only provide countermeasures and suggestions for the overseas investment,but also offer other mining companies some references and lessons,with a view to further improving the competitiveness of Chinese enterprises in Australia,and to some extent,to alleviate the contradiction between supply and demand of domestic resources and ensure the national economic security.