Risk Analysis

Objective

Analyze the risks associated with the creation and operation of a real estate portfolio/fund for the purpose of presentation to investors, creditors, and for internal decision-making purposes.

  • Provide confidence and transparency to investors
  • Analyze volatility that may impact fund performance
  • Demonstrate accountability for fund return and risk objectives

Opportunity

Identify potential risks at the fund and asset level that may impact performance or identify imbalances in risk and return.

  • Identify potential risks of the real estate strategy
  • Develop tactics to counteract the effects of the fund’s external and internal risks

Solution

Perform a risk assessment that allows a reader to clearly visualize and analyze the risk factors of a fund.

  • Analyze the risks at the fund level and each asset in the portfolio
  • Present a model to assess and visualize potential risks in a clear and objective way

Process

Fund Level Risks

  • Market Risk
  • Credit – Counterparty Risk
  • Operational Risk (Governance)
  • Liquidity Risk
  • Strategy Risk

Asset Level Risks (Performed for Each Asset of Portfolio)

  • Market Risk
  • Credit Risk
  • Liquidity Risk
  • Business Risk
  • Operational Risk
  • Valuation Risk