Financial Risk Identification And Assessment Analyses Of Overseas Project

With the enhancement of the development of China's reform and opening up and the comprehensive strength of the enterprise,more and more domestic enterprises begin to go abroad,with implementing international strategy or strategy of the transnational corporation,Under the background of "The Belt and Road",China's construction enterprises gradually go out to participate in overseas engineering project construction.Based on this,this article uses project research method,Delphi method and fuzzy analytic hierarchy process(FAHP)methods to study China's construction enterprises in the overseas project risk identification,project evaluation and response.Based on system analysis of previous research,combined with the specific environment of China's actual situation and construction enterprises project to do analysis.In theory,most researches on financial risk management of overseas projects have not great breakthroughs,mainly based on qualitative analysis,with not enough data support so that they can't convince to apply.The reason is that the construction units do not pay enough attention to financial risk management,and most overseas projects are led by the government,mixed with many political factors and ignoring the benefits of projects.In practice,Chinese enterprises overseas project contract started lately,and do not have experience in risk management.In addition,the environment of every country is different.Therefore,there will inevitably be many risks,especially financial risks.The theoretical research is insufficient and is seriously lagged behind the actual financial risk management.Therefore,it is necessary to study the identification and evaluation of financial risk.As for the significance of financial risk management of overseas project:firstly financial risk management helps to reduce losses on account of financial risk;secondly,financial risk management is conducive to confirm the project can continue smoothly;finally,the financial risk management of project is to increase the implementation of the project plan and improve the overall competitiveness of enterprises.This paper not only analyzes the financial risks and main risks of overseas projects,but also provides some references for financial risk management to overseas construction projects of Chinese construction enterprises.In the part of risk identification,this paper firstly introduces the financial situation of the group company,then on this basis,further analyzes the main financial problems faced by each project,and finally selects three typical engineering projects to carry out specific risk analysis.In the part of risk assessment,this paper uses qualitative and quantitative method to make analysis.In the part of qualitative analysis,illustrate the financial risk characteristics of overseas projects through the two dimensions of comparative financial risks in different industries,domestic projects and overseas projects.In the part of quantitative analysis,using fuzzy analytic hierarchy process(FAHP)method,separate financial risk into three sub risks,including subject risk,operational risk and liquidity risk.The index system of financial risk assessment is an important basis for evaluating the risk.3 first grade indexes,10 two level indexes and 32 three grade indexes are determined in this paper.Then,on the basis of qualitative and quantitative analysis,we evaluate the overall financial risk level and main risk factors of the project,and propose corresponding risk response measures for these risks.