Research on factor identification of Chinese interstate project risk management

Abstract

The problem of large interstate projects managing is of particular relevance in the context of investment cooperation expansion between states, the implementation of programs for interstate transport and other infrastructure construction. The growth in the number and volume of interstate investment projects creates a special layer of tasks management associated with the risks of their implementation, and insufficient accounting and errors in eliminating risks can lead to significant economic and reputational losses. Chinese international engineering enterprises have accumulated valuable experience in the implementation of a significant number of interstate projects. However, due to the complex and constantly changing foreign environment, Chinese enterprises face difficulties in implementing these projects, including due to the poor understanding of the risks concept and insufficient risk management technologies. The purpose of the study is to identify the factors and stages of the implementation of China's interstate projects that are most vulnerable to risks and propose measures to minimize them based on the concept of risk diversification by the project life cycle stages, developing general principles of risk management and a system of specific project risks. An analysis of the results of the implementation of a number of large completed investment projects of the PRC based on the author's methodology made it possible to formulate the conclusion that for an interstate project, the priority attention of the authorities should be focused on minimizing the risks of the construction stage. The second risky stage is the turnover and startup stage. For government authorities and participating companies, the authors formulate a number of practical recommendations on technologies for large interstate projects risks minimizing.