The Improvement Study Of Financial Risk Management Of EPC Project In NFC

In recent years,with the promoting of “One belt,one road” strategy by the Chinese government,many Chinese enterprises have gone abroad to invest in overseas projects.Among many enterprises that operate projects overseas,attention has been paid to the non-ferrous metal enterprises,because of the scarcity of resources.Overseas projects of non-ferrous metal enterprises are mainly contracted in the form of EPC.Compared with general forms,EPC projects usually follow a longer cycle and higher investment cost.After years of market competition,China's non-ferrous metal enterprises have achieved several achievements in the investment and operation of overseas EPC projects.However,they still confront many risks,among which financial risks are so deadly that they shall determine the survival and development of enterprises.Therefore,it is of great significance and meaningfulness to study the financial risk management of overseas EPC projects of Chinese non-ferrous metal enterprises.In this paper,N company,the “star” of Chinese non-ferrous metal enterprises,is taken as the research object.The research on overseas EPC project and financial risk management is summarized.Regarding the implementation of financial risk management framework proposed by Jide Zh ang as the main supporting theory,the financial risk management and improvement of overseas EPC project of N company are studied.This paper initially introduces the basic situation of N company and its overseas EPC projects,analyzing the financial risks of the overseas EPC projects of N company from the external and internal aspects.The current situation of its financial risk management in N company is analyzed and evaluated by applying the method of Fuzzy Integrated Evaluation.Certain problems in its financial risk management have been found,and the causes of these problems have been analyzed.This paper constructs the improvement plan of financial risk management according to the actual situation of this company by referring to the COSO-ERM theory as well as the financial risk management framework theory of the enterprise group.The improvement plan of financial risk management starts from three aspects,including the target layer,management layer and basic layer.Specific improvement suggestions for the financial risk management of overseas EPC project of N company have been put forward.The suggestions include refining the financial risk management objectives of N company,defining the responsible subjects in financial risk management activities,reasonably using the procedures and methods of financial risk management and improving the finan cial risk management monitoring mechanism,etc.From the three aspects of governance structure,corporate culture and personnel training,this paper puts forward safeguard measures to improve the financial risk management effect for overseas EPC project of N company,which shall provide reference for other non-ferrous metal enterprises' financial risk management in their overseas projects.