The Risk Management In Early Real Estate Project

Now 21 Century sees more and more new problems and a rapid science development competing accordingly. Moreover after our nation joined the WTO, we are meeting a quicker life and a fast changing society. In our real estate industry, we are also meeting the challenge of the famous groups which have priorities in finance, know-how, marketing and service after sale both from home and abroad. In allusion to this chance, how to utilize the avail affect and avoid the rise brought by the development of real estate is an important project. So the concerned technical and managing personnel must pay attention on the risk management of real estate projects both in theory and practice.The cycle of real estate consists of four stages including investment decision, pre-stage, construction and sale (renting). At the beginning, the developer will encounter the maximum of the unidentified, risks and dynamic. But during the proceeding of construction, the developer would know more and more results and the risks become less and less. However this article will emphasize the risk management before construction.Real Estate Development Risk Management System: This is an organic system that combines every element of real estate development according to the substantial requirements and makes them mutually identical, relative and controllable to form the function of determination. This system contains targets of risk management, organization, program, treatment and information.This article analyzes the present situation of real estate risk management and elaborates the significance of the real estate management and the urgent and essential performance of risk management in our country. It also illustrates the general steps and methods of risk management. It emphasizes on the bases, methods and constitution of the risk management in pre-plan and the concept, basis, methods and steps of risk identification. It diagnoses any risk and its origin during the period of decision making and the pre-stage of development and provides the appraisal. On the basis of appraisal, risk determination works out risk management methods and different resolutions according to the degree by considering the present and future targets of the company and figures out the best solution or the combination of solutions.This article also expounds the principles that is applying in the development of real estate like risk evasion, risk transfer, risk preservation, risk control and risk application. At last it expresses the supervision, decision and efficiency of risk management.