Abstract:Based on theory of investment risk assessment,identification systems of investment risk have been studied combined with characteristics of governmental soil and water conservation investment in this paper.On the basis of structure decomposition of investment risk in the whole project,analysis method of Monte Carlo simulation for soil and water conservation investment risk has been put forward.A soil and water conservation project has been taken for case study and relative datum have been calculated,in which the expected results have been obtained.It has been demonstrated that the method this paper raised is suitable for analyzing governmental soil and water conservation project investment risk.