Managing risks – acting with foresight
Real Estate Investment Risk Forum
Martin J. Brühl, CIO and member of the management board of Union Investment Real Estate GmbH
New solutions for recurring challenges
Ten years on from the global financial crisis, the financial markets are once again in a late stage of the cycle. Investors’ risk-return profiles are under pressure due to high demand for real estate and rising prices.
The industry has already made many improvements in order to avoid a new crisis. At its recent meeting, the IRF also identified three further solutions to improve risk management.
- A better mechanism is needed for cross-border sharing of quality-assured, comparable real estate market data between investors.
- The real estate industry’s risk management systems should draw on lessons from other asset classes, such as listed securities, to make processes more efficient.
- The real estate industry needs to improve knowledge sharing to ensure new generations are able to learn from the experience of previous property market cycles.
Risk management benefits from digitisation
Ongoing digitisation is helping the real estate industry to further improve risk management. Key advantages include greater data transparency and new analysis and risk modelling options.