Research On Risk Management Of M Commercial Plaza Project

In recent years, the rapid development of the real estate industry has become one ofChina’s pillar industries. However the real estate development projects which bring highreturns for investors, at the same time, has a high risk. Owing to that real estate developmentprojects involve the process of purchasing and renovating land, housing co-nstruction andacceptance, as well as the last step to sell and lease the accommodations,so the real estatedevelopment projects have long investment cycle, In addition the project needs a largenumber of money, involves more relevant stakeholders, moreover the real estate industry iseasily influenced by national policy, so in this series of activities, the uncertainty is alwaysassociated with the whole process of real estate development projects, so as that the real estatebusiness face more inevitable risks. Thus the risk management of real estate project isurgently necessary and has realistic significance for research and practice.This paper takes M commercial plaza development project as the example to analyze,using systematic point of view to analyze the whole process of the project, including landacquisition phase to the final project leasing stage.On the basis of analyzing the generaltheories of risk and risk management, this article studies, taking the real estate project MCommercial Plaza for example, the whole process of the square on risk management, thetheory and method of the application of risk identification, estimation, appraisal, riskmanagement strategies and surveillance. And it systemically analyzes risk factor occurred atfour stages(investment decision, investment preparation, construction and sales), usingqualitative and quantitative analysis method comprehensively, mak ing an accurate assessmenton the various stages of the main risks and minor risks, and put forward the reasonablesolution.The article illustrates the definition and classification of risks, project risk managementsteps and technical methods. According to all possible sources of risk, risk events, as well asthe extent of the risks and other risk factors at different stages of real estate developmentprojects, we analyze all risk factors at the four phases of the M Commercial Plaza project aswell as the classify all of the risk factors. Then we use expert investigation-qualitative analysis methods, as well as quantitative analysis method such as sensitivity analysis,breakeven to assess the risk factors identified, at last we get important risk and minor risk.Finally, depending on the impact of all the risks, combined with the characteristics of the Mproject itself, we choose the risk factors of the different stages of coping strategies to reducethe degree of losses caused by risks in order to complete the final goal of the project. Inaddition, we turn to take real-time tracking control of M Commercial Plaza project, so we canhandle timely processing of emerging risks in the risk monitoring process. Because of this, wecan not only solve the practical problems of risk management process about the MCommercial Plaza project, but also provide reference significance on the process of riskmanagement in some other similar projects in future.