Contracting overseas construction projects is usually considered a 'high risk business', mostly because of a lack of adequate overseas environmental information and overseas construction experience. Similar construction projects may have totally different risk characteristics in different regions. It is difficult for a newcomer to identify new risks in a new environment. It is more difficult to assess these risks and the subtle impact of relationships among them. On the one hand, ignoring these risks is irresponsible, and unrealistic decisions will result. On the other hand, identifying and assessing all the new risks and their relationships is a very complicated, time-consuming and expensive process. This process is almost impossible for the majority of projects, especially when there are inadequate amounts of information and time. When such a complex scenario is faced, identifying and controlling these vital risk factors in overseas projects becomes extremely important. In this paper, a method of managing various risks for overseas construction projects is developed. How to effectively identify the vital risks in overseas projects is discussed. A useful risk assessment technique is introduced which combines risk probability analysis with risk impact assessment. Vital risk response techniques for overseas projects are also illustrated by a case study from China.