Research On Real Estate Company Risk Management Sistem

Through the development within several years, real estate market arrived at its top in the year 2007. The government issued a series of macroeconomic policies in 2008 in order to prevent real estate bubbles from affecting the national economic, which hit seriously the real estate companies. However, the national economic began to drop in 2009 because of the America financial crisis. Hence, the government issued the macro-control policies to hold on domestic and expand growth. The policies were transferred from contraction type to expansion type. Thus, the economic began to increase from July 2009, and the same as the price of property. In the end of 2009, the real estate market reached a new top. However, some new policies were issued to control the real estate market. So the fluctuation of the real estate is affected by the government's policies.The real estate has some characterizes of large scale investment, long development cycle and too many links in process and the extra environment is easily changed, which make it has many risks. The risk management of real estate companies is necessary so that it can be go on with the complex environment.The paper reviews the history and important results of the theory in risk management. The enterprise risk management integrated framework of COSO is analyzed and studied deeply, which can direct the building of risk management in companies. We investigate and study the characters of many real estate companies. Taking a example of Company S, we use eight factors in risk management of COSO to design the risk management system for Company S. We hope that it will be a example for other small and medium enterprises.The structure of the paper is as following. In Chapter 1, the background of the found for risk management system based on enterprise risk management integrated framework of COSO is pointed out. Survey of the risk management system in real estate companies is descried. The method and innovation are discussed. Chapter 2 review the origin and development of the theory in risk management. The reason that the risk management was appear is talked. And the target and factors in enterprise risk management integrated framework are researched. In Chapter 3, the status of Company S is investigated. Some problems are found in risk management system. In Chapter 4,5 and 6, the risk management system is designed for Company S based on the characters and practices of the company and eight factors in enterprise risk management integrated framework:internal environment, target, issues identification, risk assessment, risk response, control, information and communication, monitoring.