Investment Risk Management Of Bi Sheng Garden Project

As China's rapid economic development, real estate industry has also entered a new stage. It is not difficult to imagine that the new stage of development will be followed by the effective operation of real estate projects, In particular, investments in risk management research. Scientific risk control can effectively reduce the risk of losses, and improve the market competitiveness of enterprises.This paper combines of the risk management theory and the specific practice, with the analysis of real estate project risk management. For this project, it has been carried out pre-investment research and specific financial data analysis. The paper mastered the rich information, with an overview of potential risks in this project. Based on the characteristics of real estate risks, and learned from the United States Association of Project Management, it uses the project risk management process- risk identification, risk qualitative analysis, risk quantitative analysis, risk response and risk control.First of all, it introduces the basic elements of risk management. Secondly, project situation is stated. And then, from policy, Market environment, Fund management and the main investor operation, the paper achieves project risk identification. In the market risk analysis, the use of PEST analysis of risk assessment models and methods, helps evaluate market risk analysis. In the fund management side, break-even analysis and sensitivity analysis have been used for the analysis of financial indicators.On the base of above analysis, Accelerated pace of project sales and analysis of policy changes avoid the Policy risk. Adequate market research analysis and a variety of sale methods help market environment risk reduction. Collection of information relating to similar projects and Information-sharing mechanisms reduce similar market competition risk. Set up a sound financial management system; strengthen the real estate investment fund management; strengthen the supervision and management of late loan capital. All the three measures mentioned above avoid the risk of fund management. Improvement of the investment risk management organization and enhancement the quality of personnel help reduce the operation risk. It develops detailed risk management measures, and monitors project risk, to ensure the effectiveness of risk coping strategies. In this paper, through the on risk management of the Bi Sheng Garden project, the writer hopes to raise the awareness of risk management, as well as to enhance the risk identification, risk assessment and risk response capacity. In view of the uncertainty of the current real estate industry and the characteristics of their own projects, the measures can improve the ability to resist risk projects to ensure that the project can be successful.