Company Y’s Overseas Contracting Projects Financial Risk And Response Research

With the accelerated process of global economic integration and the improvement of China’s comprehensive strength,more and more high-quality domestic companies are beginning to enter the overseas market.Under the background of "the Belt and Road",Chinese engineering enterprises have gradually participated in overseas engineering construction.Compared to domestic engineering projects,overseas engineering projects have relatively high investment returns,but they are also accompanied by greater financial risks.Therefore,it is urgent to evaluate,control and effectively manage the financial risks of overseas contracted projects in China.In view of this,this article will adopt methods such as literature induction,Delphi method,and Fuzzy Analytic Hierarchy Process(FAHP)to identify and evaluate the financial risks of overseas contracted projects of Y Company in China,and propose effective risk response measures based on the actual situation and the specific environment of the project contracting country.This article uses the literature induction method to summarize the domestic and foreign literature on the financial risks of international engineering projects,sort out the research status of international engineering project financial risks at home and abroad,and provide a theoretical basis for subsequent case studies of international engineering projects.In view of the financial risks that Chinese enterprises may face in overseas engineering projects,the Delphi method is used to identify the financial risks of Y Company’s overseas contracted engineering projects.It is concluded that the financial risks of Y Company’s projects mainly include political risks,economic risks,operational risks,procurement and transportation risks,and contract risks.Then,the reasons for these financial risks are analyzed.The representative Russian Baltic Sea chemical project of Y Company was selected as the specific research object,and various risk indicators were comprehensively evaluated based on the FAHP analysis method.In this article,the above five risks are set as primary indicators,and each primary indicator is set with three secondary indicators,totaling 15 secondary indicators.On this basis,the overall financial risk level and main risk factors of the project are determined,and corresponding countermeasures are proposed for these main risks,especially for exchange rate risks that have a significant impact on the project.Finally,the limitations and shortcomings of the research methods and conclusions adopted in this article are summarized,and areas for further improvement in the future are proposed.This article provides practical solutions for Chinese overseas contracting engineering enterprises to identify,evaluate,and respond to financial risks of overseas projects,and has certain reference value.