Research On The Financial Risks Of RG’S Project

Real estate is a large-scale, time-consuming and money-consuming industry which involves many procedures. It is easily affected by many factors such as environment, society, economy, politics and even psychology. Developing and investing real estate project is also a high-risk economic activity enjoys high-profit. Thus, when launching a real estate project, the investor, on the one hand should learn to recognize risks, on the other hand should use scientific methods to analyze the project completely so as to make a right decision.This paper takes RG’s real-estate investment project as a sample, mainly analyzing its financial risks in order to make an all-round analysis and research on real estate financial risks. The case study is based on some relevant financial risk management theories. It analyzes the current real estate financial risks and causes by combining real estate’s features with its internal and external environment factors. Besides, the paper also adopts some analysis methods such as Risk Analysis, Break-even Analysis, and Sensitivity Analysis to evaluate and assess the important risks, and propose some risk control and disposal measures.The thesis adopts scientific analysis methods and relevant mathematic measures to make a systematic research and discussion on real estate project development from the following aspects:financial risk recognition, risk estimation and risk assessment, as well as risk management. It combines the methods of dynamic analysis and static analysis, qualitative analysis and quantitative analysis to make a specific analysis on real estate’s financial risks and put forward some suggestions to strengthen sense of risk. The paper also concludes a practical financial risk assessment system for real estate to make decision on investment, in order that investor can select an affordable project rapidly. At the same time, the system can help provide some optimal and practical managerial measures for controlling financial risks.