Risk Management Model for Residential Real Estate Project

For years, many research studies have focused on real estate projects for the risk reduction and increase the output from the real estate industry with the help of following complete risk management. However, Real estate industry is having projects which are very intricate in nature, where uncertainties & risks raise from different sources. In this article I consider the presence of risk in real estate industry two scenario, one is Optimistic Scenario and other is Pessimistic Scenario of seasonal type that affects some of the activities that comprise the project. I discuss how the project risk can be affected by such uncertainty, depending on the start date of the project. An effective and efficient risk management approach requires a proper and systematic methodology and, more importantly, knowledge and experience. This paper addresses the problems of risk management in construction projects using a knowledge-based approach, and proposes a methodology based on a three-fold arrangement that includes the modeling of the risk management function, its evaluation, and the availability of a best practices model. A major preliminary conclusion of this research is the fact that risk management in construction projects is still very ineffective and that the main cause of this situation is the lack of knowledge. It is expected that the application of the proposed approach will allow clients and contractors to develop a project’s risk management function based on best practices, and also to improve the performance of this function