| Real estate development is an activity comprehensive, special and highly technological, and of high investment, high return and high risk. The nature of real estate determines the properties of investment in this area such as large amount, long period of operation and delay in cashing. During the investment, unavoidable risks encountered are tangible ones from management and finance, and intangible ones from policy modification. In addition, many uncertain factors result in the uncertainty of investment, which brings about potential risks when planning and making decisions, especially at the preliminary developing stage in China. Where the market system has not been established completely, together with lack of relevant laws and regulations, insufficient credits and information supply, the investment in real estate is facing more risks.In general, real estate investment is quite different when compared with those in other fields. Many considerations have to be taken such as additional value to the property and comparison of the value to estimated selling price. Only after a deliberate analysis of the existing and potential risks can investors avoid failure in their actions.With the establishment of China market economy system, the real estate market becomes more complete. Besides, the great importance of real estate in National Economy has attracted much attention from allover the world. However, it must be realized that market economy is essentially a risky economy, making research and its applications on risk management in urgent need.Wuhan Optics & Electronics Plaza is an integral part of the market service system and an infrastructure in Wuhan Optics Valley. Because of the successive construction of exhibition plazas and centers, severe competition exists in this field. This paper, on the base of expounding the principles of risk analysis and management, analyzes the key risk factors in investment of Wuhan Optics & Electronics Plaza, and puts forward relevant settling measures.
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