Risk Management Study Of International Project Contracting In Ethiopia Of A Company

Along with the deep development of the Go Global Strategy,and the positive response and fruitful achievement of the Belt and Road Initiative launched by Chinese government,Chinese companies have achieved remarkable results in international project contracting through decades of experience and lessons.China speed and China quality have been widely recognized by the international community while market share and excellent cases are increasing.However,it shall not be ignored that considering the severity and changefulness of international political situation,the sustained slowdown of global economic growth,and the complexity of international project contracting,Chinese companies are facing not only important opportunities but also severe challenges and ricks in today’s society.In the above context,based on analysis and summary of the theories regarding international project contracting and risk management,through the case study of the project in Ethiopia of the A company,by analyzing the macro environment of A company’s project and its own conditions and circumstances of A company,this paper has analyzed and identified four main external risks:political risk,economic risk,cultural risk and natural risk,as well as three internal risks:capital risk,contract risk and construction risk,assessed these risks using Analytic Hierarchy Process(AHP),listed the risk ranking,and pointed out the existing problem of risk management performance.Through the risk identification and assessment of the project,this paper has analyzed particularly the top five risks,and moreover proposed several suitable and operable suggestions for reference of international project contracting.Meanwhile,this paper also puts forward reference suggestions for other project risks.The conclusion of this paper is based on the case analysis of project contracting of A company in Ethiopia.The risks faced by this project are universal and typical in the African region,which is a difficult problem that Chinese enterprises need to be solved.To ensure the smooth implementation and the final success of the project,Enterprises should attach importance and establish a sound risk management system.Therefore,systematical and deep risk management study of international project contracting through the case analysis has high practical significance,so to provide reference value for contractor’s risk management.