Research On Risk Management Of Engineering Projects Based On Value Chain Theory

The construction industry is one of the pillar industries in our national economy and its development faces both new opportunities and challenges with the rapid economic development in China.In 2017,The General Office of the State Council issued the Guidance on Promoting the Sustainable and Health Development of Construction Industry.The same year,The 13 th Five-Year Plan for the Development of the Construction Industry was issued by Ministry of Housing and Urban-Rural Development.These documents pointed out that the investment and construction of fixed assets is one of main task for economic construction fixed-asset investment and the output of Construction Industry is projected to grow by an annual average of 7% for the next five years.The growth of fixed assets investment will bring a broad prospect to the construction industry.However,facing the ricks from construction market,construction industry and inner-enterprise,most of the construction enterprises in China have not formed a framework system for the risk management of the project and can’t analyze risk factors of the specific activities in the project value chain systematically,which is very unfavorable to the supervision of project asset.Therefore,this paper focuses on improving the internal control system in the engineering project of construction enterprises,building a framework based on value chain theory for risk management in the project as well as the evaluation of effect.Based on the research background and basic principle of risk management in China and in combination with the application of value chain theory,this thesis takes SA company as an example to analyze the limitations of projects’ risk management systematically,indicate the interrelation between the basic value chain and auxiliary value chain,and build risk management frame model by risk management theory,including risk identification,risk evaluation,risk programming,risk monitoring and so on.According to the historical date,the main risk factors in value chain and expecting control target of engineering projects in SA Company,the effective evaluation scheme of risk management is designed and the feasibility of risk management program of engineering projects is proved by the comparison of before and after Index evaluation sore.In conclusion,based on value chain theory,this paper systematically analyzes the risk factors associated with engineering projects in SA Company,to find and optimize the shortcomings of risk management in value chain,and to turn out that risk management system of engineering projects based on value chain theory is an effective program of risk management in construction enterprises,which is of great significance and enlightenment for enterprises to explore total risk management and promote construction industry ‘s development lastingly and soundly.