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Risk Management in India

Risk management in India has helped many market participants in averting financial catastrophe. Risk management is a vast field and can be practiced in different sectors. For instance, risk management techniques and strategies are employed in the following field–
  • Health care
  • Hospitality industry
  • Banking
  • Nursing
  • Employment
  • Sports etc
Risk management in India can also be related to real estate. It is very important to assess risk whenever a real estate builder and developer is about to start a project. Starting a real estate project and taking the same to completion is a long process. And there are many unforeseen events that may take place during this period. Risk management techniques and strategies help you to analyze the risk involved in different stages of the project and take necessary steps accordingly.
Identify threats
Real estate developers have to identify the threat and work upon it so that the risk can be minimized. Not all business houses are able to identify the factors that may lead to operational, contractual, financial, and organizational loss, nevertheless, this is one aspect that can help you to earn optimum returns from your investment.
The areas which pose to be a threat during the construction process include the following. Risk management pertaining to these areas need to be worked out and analyzed.
  • Construction risks
  • Construction Exposures
  • Claims and Litigation
  • Risk transfer etc.
Since the real estate market in India is growing noticeably, concept of risk management in India is catching up rather fast. And the importance is being realized greatly.
What are the steps involved in risk management in India?
As far as real estate risk management in India is concerned, the following steps are taken. They are –
  • Identifying the factor that may lead to financial or operational loss
  • Determining the graveness and the risk involved
  • Watching the changes closely
  • Devising strategies that can help neutralize or nullify the ill effects of the same.
Risk management is a continuous process
Risk management is a continuous process and risk management techniques are employed till the time the project doesn’t get completed. Hiring an experienced and reliable risk manager can save your hard earned cash from going down the drains.
Ranging from record keeping to managing tenants, a risk manager is required to deal with any such factor that poses to be a threat to the project or the investor. It is very important for the investors as well as the real estate risk management team to work in tandem to attain its objectives in the real estate market and to stabilize good returns from the investment.
Transfer risk to insurance provider
You can transfer the risk to an insurance provider who can assure you of compensating you financially should any unforeseen financial crisis occur as a result of mishap or unexpected event.