Property investment always carry significant amount of risks and uncertainties. Risk management is not much trendy practice within property developers in Sri Lanka. Risk analysis is important to realize the impact of risks and how it affects financial aspects of the developer if occurred. This research facilitates the developers to identify what are the potential risks that could occur during development and post development stages of office developments. This will further assist them in order to make decisions on alternative solutions and/or to reserve necessary funds so as to cope with risks in an effective manner by providing prior knowledge of potential risks. Identification of probable risk factors has been accomplished via semi structured interviews reinforced by findings of the literature survey. Identified risk factors in development and post development stages of office developments have been qualitatively analyzed applying a risk matrix considering the overall impact of risks in terms of significance and probability. The analysis reveals that the overall impact of risk is not very high in both office property development and management. Furthermore the risks during post development stage are lesser than at development stage. It was further revealed that most of the risks could be reduced or eliminated by means of proper planning, executing and regular monitoring in terms of consequence and/or likelihood of occurrence of risk factors.
Built-Environment Sri Lanka Vol.8(2) 2008 32-40
How to Cite:
Zainudeen, N. and Jeyamathan, J., 2010. Qualitative risk analysis framework for office developments. Built-Environment Sri Lanka, 8(2), pp.32–40. DOI: http://doi.org/10.4038/besl.v8i2.1910