Investigating A Systems Framework For Property Risk Management

Although the Global Financial Crisis raised the profile of risk management (RM) the current framework remains largely ad hoc and descriptive. The research investigates how general systems theory (GST) could contribute to a more rational development of RM. It then conducts a preliminary inquiry into the effectiveness of current industry practice. The paper is organized into three parts. In the first, theoretical one, a robust systems RM framework is developed. In its second, empirical, section RM policy and practice is reviewed in a selection of prominent real estate entities. Entity policy and performance is analysed and some telephone or face to face interviews are conducted for a sample of key respondents. Responses are then systematically analyzed. The results suggest some disconnect between robust RM theory and actual corporate practice. Finally, a discursive policy section draws out the implications for future robust RM practice in imperfect and turbulent markets. The framework has practical implications for property sector RM development. Recommendations are made to improve RM and, therefore, entity performance and resilience.