Risk assessment of international engineering contractors from the financial perspective

Abstract

How to identify and evaluate the financial risk of the international engineering contractors effectively is the major issue that Chinese enterprises have to face. From the contractor's perspective and combining with the characteristics of international engineering contracting, this article identified the exchange rate, interest rate, inflation and other factors in the financial risk, then measured the financial risk based on the NPV-VaR model, and finally established the basic framework of the financial risk assessment of the international engineering contractors, so as to provide decision support for the international engineering contractors.