The Risk Management Of Real Estate Project

The real estate trades have a wider prosperous prospect, and plays more and more important role in national economy with the continual and fast development of the economy of our country. It desirously needs excellent management theory in real estate, because there is still the deep-level problem in this industry. This determines the importance of risk analysis and study.On the basis of analyzing the general theories of risk and risk management, this article studies, taking the real estate project for example, the theory and method of the application of risk identification, estimation, appraisal, risk management strategies and surveillance. And it systemically analyzes risk factor occurred at four stages (investment decision, investment preparation, construction and sales), and creates "4+4" mode of risk management and it has been proved by successful instances.The article illustrates the definition and classification of risks, the definition of risk management and the goal and procedures of risk management and so on. According to the characteristics at different stages of real estate development, and the source of risks the range that risks can affect and the uncertainties, a risk table of identification is formed with items of different classification criteria concerning different possible risks of development stages. The risks are estimated /appraised by combining the methods of quantitative and qualitative analysis. By the way of sensitivity analysis, expert investigation and break even analysis, we have got the important risks through analyzing the various risk factors. After the identification and estimation/appraisal of risks, it is important how to efficiently control and handle risks. AHP refers to the choice of strategies to avoid and control the loss, and the best scheme is suggested to solve risks. Further more, through practicing the real estate project risk surveillance. We can get new information in the process of dealing with risks. Finally, I hope that the study of this article has valuable reference in risk management of real estate project.