Strategies of Risk Management for Small and Medium Real Estate Enterprises

The purpose of this paper is to seek an effective strategy in risk management to promoting sustainable development of real estate enterprises. Methods of event studies, interview survey were employed. Based on the survey on a number of small and medium-sized real estate development enterprises in Hubei province, the main context is extended with the risks which these enterprises confronted. From the view of enterprise's executive, risks are directly from contradictions of housing or land use policy, but also from some financial or R&D strategy of enterprises, esp. insufficient investment in project management techniques, construction and planning technology, capital structure was far from ideal, single financing channel, lack of consciousness of risk prevention and risk management system. Several countermeasures have been suggested to reduce management risks to some extent and promote the sound development of domestic real estate enterprises. Authority and enterprises should also make its own efforts on reforming regime or adjusting its strategy.