RISK ANALYSES IN HOUSING INVESTMENT PROJECTS: METHODS AND TOOLS
A. Farokhi, “Risk Analyses in Housing Investment Projects: Methods and Tools” Paper presented at 1st national conference on the role of management sciences and accounting In improving Iran"s monetary and financial policies. Sari, Iran (Dec 2024)
Risk analysis in housing investment projects is a critical process that helps identify, assess, and manage potential risks. There are various methods for conducting risk analysis, which include both qualitative and quantitative approaches. In qualitative analysis, experts identify risks and their impacts through surveys and interviews. On the other hand, quantitative analysis uses mathematical and statistical models to numerically calculate the likelihood of each risk occurring and its financial impact. These two approaches enable investors to make more informed decisions and manage their projects based on more accurate assessments. Several tools are available for risk analysis, and their effectiveness varies depending on the type of project and the nature of the risks. One such tool is the risk matrix, which visually represents risks by plotting the likelihood of occurrence against the severity of their impacts. Additionally, advanced software such as Monte Carlo analysis allows for the simulation of various scenarios and the evaluation of potential outcomes. By combining these methods and tools, investors can develop more effective strategies to mitigate risks and increase the return on their projects.