Research On Risks Management And Control Of SDHS-CSI’s Investment In Latin America

In recent years,as the wave of globalization has swept the world and China’s comprehensive national strength and international influence have prospered,Chinese companies are increasingly appearing on the world stage using overseas investment as one of the main ways.Especially,there is more and more competition in the field of traditional overseas engineering(EPC),and the level of public expenditure and external debt have been reduced continuously by governments,so overseas investment has become a key for Chinese enterprises to open up the world market.However,after experiencing the frenzy and chaos of Chinese enterprises’ initial overseas investments,the Chinese government and enterprises have become more and more aware of the importance of risk management and control in overseas investment.Based on the relevant theories and research on overseas investment and risk management,especially the risk identification and evaluation theory model of McGowan,Moeller and Colin White,the paper combines the overseas investment risk management theories with the actual business situation of SDHS-CSI in Latin America through literature research method,case analysis method,second-hand data method and interview method.Through a large collection of relevant data in Latin America,understanding Latin American policies and humanities information,and mastering the macro investment environment in Latin America.Using the PESTEL model to describe and sort out the macroeconomic status of Latin America’s politics,economy,society,technology,environment and law,the paper sums up the historical characteristics and the latest trends of the Latin American region.At the same time,based on the existing overseas business layout of SDHS-CSI,the paper objectively analyzes the company’s advantages in brand,industrial structure and capital operation in the process of investing in Latin America,as well as the disadvantages due to planning,experience,human resources and management capabilities.On this basis,combined with the system’s risk identification method and the actual business situation of SDHS-CSI in Latin American,the paper identifies and evaluates political risks and economic risks of the existing tracking business of SDHS-CSI’s Latin American investment through dimensions which are more refined and close to the reality of SDHS-CSI and Latin America.At the same time,the corporate risk of SDHS-CSI’s investment in Latin America is evaluated by decision risk and financial risk..On the basis of the previous research,this paper elaborates the existing risk management and control system of SDHS-CSI by means of the risk management and control process of the actual case(PPP project of Ecuador Vitality Road),and objectively evaluates the system.Then the paper specifies that when the existing risk management and control system is applied to the Latin American investment field,it will be affected by unfavorable factors such as poor information transmission,insufficient talent reserve,low degree of localization,narrow investment channels,and low decision-making efficiency.In order to overcome the shortcomings of the existing risk management and control system applied to Latin American investment field,this paper points out that SDHS-CSI should strengthen the evaluation of Latin American investment environment based on the principles of overall systemicity,operational feasibility,operational efficiency and dynamic control by carefully choosing investment areas and fields,increasing the intensity of international talent training and localization development,strengthening the efficiency of capital operation,introducing third-party institutions to ensure investment security,and fully empower the front-line staff to simplify the approval process,so as to the present risk management system is effectively optimized to make itself more suitable for risk management and control in the field of Latin American investment.