Mitigating Risk in Real Estate and Construction

“Employing a simple decision model that focuses on risk assessment, while considering some of the most urgent risks facing the industry, will better equip you to navigate future uncertainties,” the author writes.

INDIANAPOLIS—Real estate and construction professionals are accustomed to calculating subjective risk scores and risk-adjusted return on capital, but some industry executives may not be considering certain risks that impact enterprise on a daily basis. Executives have been trained to reduce risk management to a checklist or calculation that is triggered only under particular parameters, rather than using risk assessment as an active part of daily decision making. Even commonly practiced decision models fail to adequately focus on assessing risk.  Employing a simple decision model that focuses on risk assessment, while considering some of the most urgent risks facing the industry, will better equip you to navigate future uncertainties.

Implementing a Risk-Adjusted Decision Model