Risk Management of International Project Based on AHP and FMEA

In the promotion of global economic integration, Chinese enterprises began to enter the international engineering contracting market. As risk factors are more complex in international environment, risk management has become an important research topic at the moment. FMEA, shorted for Failure Modes and Effects Analysis, is applied to study the failure modes for each part of the product and to control risk in the first line of defense. Taking advantage of the idea of FMEA, contractors have to identify all the risk in international engineering and build a multi-level structure. On the basis of analytic hierarchy process, we calculate the risk relative importance and harm degree by analysis and assessment. Then take effective measures to avoid risk. With the combination of qualitative and quantitative methods, we try to form a risk management system for international project.