Investing in real estate, like any other speculative endeavor, comes with its own set of risks. Some are not within an investor’s control. Demographics and changing preferences, for example, could make the difference between a successful residential and commercial real estate venture and one that does not live up to expectations. But veteran real estate professionals know that there are multiple risks that can be identified and managed.
The financial officers in real estate ventures are now deeply involved in the strategic visions of investment management firms as well as their operational needs, internal controls and financial reporting. When it comes to managing risk, chief financial officers understand the importance of regulatory compliance, data security, digital technologies and transactions, back-office activities and controls, and portfolio valuation.
An approach to risk control and compliance that satisfies company stakeholders as well as regulatory entities requires insight into the ongoing economic, regulatory and operational issues that real estate entities are facing. Understanding these myriad risks is critical to establishing a responsive and transparent approach to their management.