The Research Of Risk Management On Construction Real Estate Project

The cycle of real estate development consist of four stages including investmentdecision, pre-stage, construction and sale (renting).The risk consists in the wholecycle of development. However this article will emphasize the risk management onconstructionphase.Real Estate Development Risk Management System: This is an organic systemthat combines every element of real estate development according to the substantialrequirements and makes the mutually identical, relative and controllable to form thefunction of determination. This system contains targets of risk management,organization,program,treatmentandinformation.This article analyzes the present situation for real estate risk management andelaborates thesignificanceforthereal estatemanagementandtheurgentandessentialperformance for risk management in our country. It also illustrates the general stepsandmethodsofriskmanagement.Itemphasizesontheconceptofrisk,sortingofrisk,and the concept, steps and methods for risk identification. This paper has discussedthe risk assessment concept, and introduced the commonly used appraisal method,introduced with emphasis the investigation and the expert hit a minute law, the modelof Monte kalo simulation principle, in the real diagnosis research, carries on theapplication to the principle. It diagnoses anyrisk an its origin duringconstruction andprovides the evaluation. On the basis of appraisal, risk determination works out riskmanagement methods and different resolutions according to the degree by integratingthe present and future targets of the company and figures out the best solution or thecombination of solutions. This article also expounds the principles that is applying inthe development for real estate like risk avoidance, risk control, risk transfer, riskretention, diversification of risk and risk speculation.The theoryis tested and verifiedaccordingtothecaseinthearticle.