Risk is uncertain in the nature. Risk management process help to identify and properly assess the risk in the effective manner. That will help to take better decision and resolve problems. It may be negatively and positively impacting on business so that's why should properly analysis and monitor on the time. Management procedure help to remove uncertainty and achieve decided goals and objectives of the company. This will be occur from various sources such as financial risk, threat of reject project, market trend, economy of the country, public investments, equity fund and debt fund so more. STOCKLAND is the real estate company in Australia. Its has different business elements like shopping centre, housing property, industrial estate etc.
Research is the process in which identify and find out something new or innovative thing that help to develop business in the effective manner. In all the sectors and areas having risk that is uncertain in the nature. Its not fix that's why it will be occur at anytime and in any situation. To manage and control over the risk so working according to the risk management process. By which its help to properly monitor and evaluate the risk and their reasons. Its providing better solution to take effective decision. In the real estate sector having various kind of risk that may be positively and negatively impacting on business process and working performance of the company. To manage risk of the business so there is prepare an effective risk management plan and use risk assessment method (Pickering, 2010). This method and plan help to clearly determine risk factors and their solution systematically.
To manage the risk in the systematic manner so there is including various stages in risk management process those are under the below:
Identify the Risk
In this stage define and determine the risk also their factors. That might be affect on research project. Its help to find out suitable techniques and methods those help to resolve problems and provide better solution.
After identify the risk should properly analyse them. In which should determine the nature of risk and understand that in the effective manner. It will be possible affect on business process and their working performance
Evaluation or Rank the Hazard
In this stage properly evaluate the risk and according to that provide ranking to them so its help to define them in the systematic way.
In the last stage assess the highest risk of the research project and according to that find out solution to minimize the risk and increase profit level of the company. Risk might be positive and negative, positive impacting is just like providing opportunities to develop business. On the other hand, negative impact of risk may be chances of losses and threat of reject project (Spaargaren, 2011).
To assess the risk in the systematic manner so there is having some tools those are under the below:
Capital Assets Pricing Model(CAPM)
Its a tool to assess risk in the statistical and mathematical term. By using this model easy to identify appropriate rate of return of assets or property. In which including also non-diversifiable risk.
Probabilistic Risk Assessment (PRA)
This model based on probability of risk related to the research project. Both these model are working in the monetary term that help to define factors and nature of risk. These models find out better solutions and develop business in the effective manner.
To properly assess the risk and their nature so there is including stages that help help to find out risk those are following:
1. There is available various kind of risk those are directly and indirectly related to the different sectors. Risk is unfixed in the nature that affecting negatively as well as positively. In the real estate sectors including various hazards such as:
Staff Personal Safety
In the real estate sector require safety and security of worker and staff so they can work on that effectively and efficiently. There is involve mainly accidental risk and technical risk. So that's why should provide safety and security to them.
(a) Accidental Risk: During the working on real estate project in which having accidental risk. While working on that suddenly occur risk as like accidental. It might be harming on life so that's why should provideinsurance facility and service by the company. By this facility they can working well on the project.
(b) Technical Risk: This kind of risk refers to if staff or workers does not having proper information and training to operate machinery and instrument of the project so might be create risk for them. That's why it is require to provide proper training to all workers so they can easy to work on that with proper safety and security.
Risk related to the Agency
Office related risk are help to define that will be affecting on working system and investment capabilities of the particulate company. Agency related risk are under the below:
(a) Credit Risk: This kind risk refers to identify monetary power of the company. How much capable they can invest in the market and development process of the business. So capital or fund play an vital role to complete project so that's why through the company should invest own fund in the business and try to take minimum amount from the market as debt fund.
(b) Market Risk: This kind of hazards are affecting on business because market daily fluctuate by many reasons. In which including market trends, different companies of share prices, Exchange , interest rate and so more. All these are affecting on real state business.
Risk related to customers/ clients
All companies are want to provide better services with effective quality to customers. But sometimes in which including various risk such as:
(a) Illegal Risk: This risk refers to when company through signed on fake illegal documents by the customers. Agent of the company dose not having any legal right to sell property to customers. Its called illegal risk that affecting on company's image and trust of customers.
(b) Misuse of Documents: Sometimes through the company misuse of client documents and information. Its illegal in the nature in which customers having right to sue against the company.
2. Risk assessment matrix is the tool to assess and properly identify the hazards and their reasons. In which probably evaluate the risk in the systematic manner. It is the easiest way to determine risk in the table or matrix form. There is all risks are categorised according to their nature so its help to properly define risk.
3. To minimising the risk from real estate should invest money or fund in the market after proper analysing and evaluation In this sector few risk are fixed so have to insure against that kind of hazards also taking insurances services and facilities. Staff or worker of the project should provide insurance service to them so they work on that project with security and safety. To start this kind business should try take invest own fund or equity fund and try less taking debt fund from the market or public. By which company dose not liable to pay anything to public.
4. To monitor and control the risk by using effective method that help to provide better solution. Through the company should execute the plan according to that working on the project that help to reducing risk. Risk affecting on project that's why should properly identify the risk and nature (Stevens, 2013).
- Archer, J. and Syratt, G., 2012. Manual of travel agency practice Routledge.
- Barbee, A.P., and et.al 2011. Successful adoption and implementation of a comprehensive casework practice model in a public child welfare agency Application of the Getting to Outcomes (GTO) model. Children and Youth Services Review 33(5) pp 622-633.
- Caldwell, R., 2012. Reclaiming agency, recovering change? An exploration of the practice theory of Theodore Schatzki. Journal for the Theory of Social Behaviour 42(3) pp 283-303.
- Pickering, A., 2010. The mangle of practice: Time, agency, and science. University of Chicago Press.
- Ritchie, J., and et.al 2013. Qualitative research practice: A guide for social science students and researchers Sage.
- Spaargaren, G., 2011. Theories of practices: Agency, technology, and culture Exploring the relevance of practice theories for the governance of sustainable consumption practices in the new world-order. Global Environmental Change, 21(3) pp 813-822.
- Stevens, E., 2013. Safeguarding vulnerable adults: exploring the challenges to best practice across multi-agency settings. The Journal of Adult Protection 15(2) pp 85-95.
- Sullivan, H., Williams, P. and Jeffares, S., 2012. Leadership for collaboration: situated agency in practice. Public Management Review, 14(1) pp 41-66.