The Research On Implementation Of TRM/ERM In Commercial Real Estate

As we all know, Commercial Real Estate is a kind of real estate that covers two risks highly focused fields of real estate development and commercial operation. As being highly profitable, the commercial real estate faces more remarkable risks than general residential real estate and commercial operation. The traditional risk management becomes incapable in large commercial real estate enterprise or project, because of various property types and operational modes and their combinations, and of complicated relations within risks that influence each other. The ERM and TRM are all new ideas in risk management, one generates in finance risk management, another in project management, and they have achieved different progress separately. ERM and TRM could prove that the new trend for risk management is from systemic and overall view to cope with risks. In this article, the subject is trying to apply ERM/TRM to risk management of commercial real estate. The research includes such issues as follows: illustrating the research in risk management and existence of commercial real estate; comparing ERM and TRM to comprehend the ideas of total risk management wholly and deeply; Learning from experiences in other fields to construct a system that will actualize the total risk management in enterprise or project, which is made up by wholly organization measures, PDCA circulations in risk management, consolidated risk management method and risk management information system, Caring out wholly risk analysis within commercial real estate project from aspects in whole life circle, in different property types, in different operation modes, in different participant s and in Key Success Factors. In the last chapter, based on the total risk management system been constructed and the wholly risk analysis in commercial real estate in preceding chapters, it is discussed that how to implement total risk management in large commercial enterprise from such parts as the specialties, difficulty and process of implementation, consolidated risk management method, risk management information system and risk culture.