Research On Risk Assessment For Real Estate Project Investment

The risk management is a newly-developed branch of learning which focuses on researching the law of risk and the technology of risk control. The economic units, based on Risk Identification Risk Measurement and Risk Assessment, optimize and organize the various kinds of risk management technology in order to obtain the greatest safety guarantee with the least cost.According to the state regulated safety norm or the generally accepted safety norm, Risk Assessment is used to measure the degree of risk in order to confirm whether the risk needs to be controlled or the degree of controlling. The risk can't be only decided by two factors-the degree of the loss frequency or the degree of the loss extent, the degree of risk must be took into consideration in order to confirm the degree of the risk.Real estate production is a special kind of commodity differs from other kinds of goods, this decides that the real estate investment is different from other investment, especially the investment procedure of real estate project is a process of manufacturing for predicting the future market demand. All the distinctive features decide that the real estate Industry is a high risky Industry along with instability. These unstable factors play a key role in the real estate investment.The real estate investment is facing the complicated risky factors which can cause severe consequence, because of the characteristic of the real estate investment-long period large amount and complex factors. For ensuring the quality of the risk analysis, we need to scientifically the various kinds of risks possibly existing the process of the real estate investment so that the real estate developing enterprises can master the nature of risk and the changing law of risk, then take measures accordingly to reduce the risky loss.In the whole process of the real estate investment, there must be various kinds of unstable factors that can take the positive or negative effect upon theproject. The risk assessment of the real estate investment can properly carry out the analysis and evaluation on the instability and the effect caused by the instability and the degree of effect on the real estate investment. Through paying attention to the instability, exposing the effect of risk, analyzing the potential risk and evaluating its own capability, we can take measure to reduce the negative effect and possibility of existence. The risk evaluation of the real estate is a process of combining the subjective theory with the objective theory, but it is difficult to use describe the evaluation of the potential risks.This thesis is to set up the model of the risk evaluation of the real estate investment according to the theory of system engineering and method of AHP (The Analytic Hierarchy), divide the evaluated object into the basic evaluation set, choose the factors affect on the evaluation set as the appraised norm, then use the blurred comprehensive evaluation model to put the respective unit together so as to obtain the total value of the evaluation. The application of the comprehensive evaluation model can combine the quantitative analysis with qualitative analysis and provide the administrator with a chance to wholly understand the situation of risk existing in the project and make the decision more scientific.