By Aclaimant
Jun 25, 2024
The real estate market is uncertain and features a vast and diversified risk portfolio. The industry has many moving parts, including the climate, government regulations, properties, tenants, employees, clients, and investors. Leaving any of these parts unprotected could result in costly errors, lawsuits, or a ruined reputation. And without the right strategy and technology, it’s nearly impossible to manage all of these risks. To actively manage risk, you need to pair an understanding of the industry’s inherent risks with technology. A risk management platform can help your residential or commercial real estate business navigate unstable market conditions and an evolving risk landscape. Real estate professionals face a risk environment far more complex than most other industries. External forces like market change can fluctuate the value of the assets under your purview significantly. By understanding the various types of risks present in the industry, you can build a risk management strategy to better avoid and mitigate them. There are three principal risk management approaches in real estate: risk avoidance, risk control, and risk transfer. Risk avoidance means avoiding risk at all costs (e.g., limiting exposure to higher-risk partnerships). Risk control involves creating a plan to actively mitigate potential risks (e.g., safety measures during an open house). With risk transfer, real estate agents and brokers understand that certain risks are inherent. So, instead of trying to avoid these inevitable threats, agents and brokers shift responsibility to a third party (e.g., insurance providers). Understanding the various approaches to risk management is important, but you also need the right technology to pair with your strategy. With a risk management platform, you can: Whether you’re a real estate agent or investing in real estate, you need to be prepared to manage the industry’s risks. It’s time to upgrade your best practices and invest in digital risk management technology. With a risk management platform, you can better monitor risks and incorporate the three main real estate risk management approaches into your strategy — saving time, money, and reputation. Learn more about how Aclaimant helps companies better manage asset risk on our Real Estate page or schedule a demo with one of our team members.What does real estate risk look like?
How to create an effective risk management plan in real estate
Prepare for real estate changes with technology