The Research Off Risk Management On Real Estate Development Project

Real estate is the polar industry in the national economy. It directly affects theliving and well-being of our people, and therefore it is of great importance. However,due to the short history of real estate industry in China, many developers don't have sufficient management skills, and especially lack of effective risk management. Real estate development projects are normally very complicated, and the cycles are usually quite long, and therefore they always have high risks. Many developers cannot face sudden risks, and they may lose significantly or even go bankrupt. Such lose not only affects the developers, but also harms the interests of people. Therefore, an in-depth study of the risk management of real estate development projects becomes a pressing issue.This article emphasis on the application of the project management, by incorporating the characteristics of real estate development project, carried out the discussion and research on the risk management of the project development process. In chapter two, this research divides the real estate development projects into several stages, and distinguishes the major risks in each stage by incorporating the actual case studies. Through this chapter, a full list of risks involved in a real estate project will be presented, and therefore provide a reference for real estate project managers. In Chapter three, this research carried out the qualitative analysis and quantitative analysis on the risk of the project. And in the quantitative analysis, this research emphasis on the application of Profit and Loss "Break Even" analysis and Sensitivity analysis. In Chapter Four, this research focus on the risk factors of the real estate development projects, by analyzing the case studies, this article introduce suitable solutions to the different types of risk.Therefore, readers could understand the application of solutions to different risks in real estate development projects. This research especially emphasizes the risk- evading solution based on the investment analysis report of a real estate project.