Value of Risk Management for Private Real Estate Development Companies under GREDA

Abstract

In the context of increasing rural-urban migration, real estate development is becoming fast emerging as the desire for shelter and individual abode increases. This development has given rise to a high volume of developmental activities. Development project have a few attributes, for example, time limit, budgetary imperatives and financial necessities, individual authoritative and legitimate conditions, intricacy and orderly qualities, so every project in itself is an interesting framework. Many uncertainty facets and risky situations tend to affect the success rate of various projects being undertaken. These uncertainties can either be pre established ahead of time or can come along as the project is being undertaken. Understanding that the various uncertainties will undoubtedly happen help in the effective managing of them. This study was aimed at assessing the benefits risk management has to organizations in relation to project success. To achieve that, qualitative design was adopted where twenty respondents were targeted purposively to share their rich and in-depth knowledge via face-to face interviews. Ethical considerations were highly upheld during the conduct of the study and the results were analyzed using thematic analysis. The findings from the study revealed that; stakeholders’ in real estate development quest for zero or near zero risk projects through the application of structured risk management practices, internal stakeholders have skewed negative view about risk and have basic knowledge on risk and risk management, professionals are using strategies to manage and mitigate risk within the real estate developement sector. The study provides recommendation including; educating organizations on risk factors that can affect project performance, development of risk management plan for each project, provide training and retraining of the project team towards the risk and its management to make it be a priority in order to arrive at successful projects and advance the business of the firm.