Research On The Risk Management Of Medium - Sized Real Estate Enterprises In The Third - Tier Cities Under The Situation Of Real Estate Industry Regulation And Control

The real estate industry is a kind of industry with high intensive capital and business scale, which is deeply influenced by the economic control policies. Within the industry, the strong enterprises are going to be stronger, and the market share is becoming more intensive. Since the profiteering era is over, various real estate enterprises are stepping into to the era of fine development and fine management. Compared with the big-sized real estate enterprises, the medium-sized real estate enterprises are lack of capitals and their risk resistance capabilities are weaker as well. Therefore, medium-sized real estate enterprises are more easy be influenced by the economic control policiesMost medium-sized real estate enterprises have not aware of the importance of risk management. They don’t know how to establish scientific risk management system and how to implement risk management process systemically. In this thesis, the main research area is the risk management within the whole phase of development for the medium-sized real estate enterprises in third-tier cities under the current situation. This research can help these enterprises to know better of the background, current status as well as the trend of the control policies. This research also can help these enterprises to identify the key risks during the whole cycle of development and take risk response measures accordingly. The risk response measures should be reasonable and effective, which can reduce the negative influence and possibility of risks or avoid unnecessary risks or transfer specific risks. The ultimate purpose is to reduce losses and to ensure the overall efficiencyUnder the above background, the economic control policies to real estate industry during the recent10years from2003to2012are researched and analyzed in detail. These policies cover monetary policies, tax fiscal policies, credit policies and other administrative control polices. This research focuses on the influence on real estate development in third-tier cities and summarized the key characteristics of real estate enterprises under the current situation.The major theory referred in this thesis is’Enterprise Risk Management-Integrated Framework’. Based on this framework, the basic steps of risk management process are define risk management objectives, risk identification, risk assessment, risk response, risk monitoring and post risk management evaluation.This thesis focuses on analyzing and discussing the key risks and risk response measures for medium-sized real estate enterprises in third-tier cities. The risks discussed in the thesis cover policy risk, raw material pricing risk, land acquisition risk, cooperation risk, project schedule management risk, cost overrun risk, quality risk, design risk, capital risk, product positioning risk, sales collection risk and medium crisis. For research reference purpose, some cases that the author practiced during the past in third-tier cities in Jingrui Properties Company are used in the thesis. Some cases happened in other medium-sized real estate enterprises in similar risk management areas are also referred to.