A Case Study Of The Financial Risk Control Of The Pakistan L Hydropower Project Of A Company

With the implementation of the policy of "One Belt And One Road",Chinese companies are stepping up their forays into overseas markets.These overseas investments and projects have improved the living standards of the people in the countries,especially the developing countries where the projects are located,upgraded their infrastructure,and have brought economic returns to Chinese enterprises.At the same time,it also provides unprecedented opportunities for Chinese enterprises to carry out industrial strategic layout on a global scale.However,the international political situation is unpredictable,the global economy is complicated and changeable,and overseas investment and engineering contracting projects are facing completely different risks compared with domestic projects.In particular,financial risks have a significant impact on Chinese enterprises' overseas projects and even the company itself due to the large capital investment and long engineering cycles.Therefore,It has become particularly important to identify and evaluate financial risks in overseas projects,to deal with financial risks,and to prevent enterprises from suffering economic losses and to maintain economic benefits.This paper first studies the literature works and summarizes the literature works on financial risks of overseas engineering projects at home and abroad.Then it uses Company A's Pakistan L Hydropower Project as an example to identify the financial risks of the project.It has identified that the L Hydropower Project mainly includes exchange rate risk,tax risk,fund risk,cost control risk,financial management level and financial personnel risk,political situation and religious cultural risk.Next,it uses the fuzzy comprehensive evaluation method to carry out risk evaluation on the construction project of Pakistani L Hydropower Station of Company A.It constructs an index system for financial risk evaluation,and conducts qualitative and quantitative analysis on the financial risk of the L Hydropower Project,so as to obtain a comprehensive evaluation result of financial risk.Thirdly,it puts forward corresponding countermeasures for each risk according to the financial risk evaluation results of the L Hydropower Project.This paper starts with specific examples and hopes to make A contribution to the successful completion of the L Hydropower Station Project of A company in Pakistan,and provide certain reference for the management of the financial risks of similar projects in China through the identification,evaluation and response to the financial risks of L Hydropower Station.