A Study of Risk Management on Project Finance

Abstract

As for the project finance, the credit object by the financial institution becomes the project not a company. This project borrows a fund and accomplishes a project with several stakeholders. In this study, the authors review project finance study in P2M and arrange business finance and project finance from the viewpoint of risk management. The authors clarify the relations of the risk between the several stakeholders in the project and show risk management framework using an example of the PFI (Private Finance Initiative) which is one form of the project finance.