Wanda·Golf Garden Real Estate Project Risk Management

Currently, the construction of real estate projects in China is in its peak stage; meanwhile,with the entry into WTO, the construction market in China is opening gradually andcompletely. Now, the diversification process of investment subjects is speeding up; thecompetition of projects is fierce, and new materials and new techniques are changing rapidly --- all these factors bring the real estate construction enterprises into more risks than ever .This paper introduces the development process of risk management in real estate projectsboth at home and abroad; it elaborates the definition and nature of risk and risk managementas well as the basic principles and processes of risk management in real estate projects.According to the risk management system which includes risk identification, risk assessment,risk response and monitoring, the paper introduces a number of methods for risk identificationand concludes all the possible risk factors in different stages of real estate projects;meanwhile, it introduces some methods for risk analysis and assessment. Taking a particularproject, Wanda ? Golf Garden, as the research subject, the paper systematically analyzes therisk factors taking place in investment decision stage, preliminary stage, construction stageand rental stage.Based on the possible risks in different stages of real estate development, the papermakes forms of risk identification according to different classification standards. It evaluatesrisks by using qualitative and quantitative analysis; it analyzes risk factors by using methodsof sensitivity analysis and breakeven analysis and then comes to some important risks. Afteridentifying and evaluating risks, how to control and deal with risks becomes particularlyimportant. Thus the paper uses analytic hierarchy process (AHP), chooses the best strategiesto reduce and control losses, and then puts forward the best measures for dealing with risks. Inaddition, risk monitoring should be carried out in order that real estate projects could get newinformation in risk handling. Finally, I hope the results of this research paper could be of somereference value in risk management of real estate projects.