Measuring Risk!

Risk Management is an essential component in the development of tourism and leisure real estate projects. The valuation of identified single risks and aggregated risk positions is fundamental for decision making after investment appraisal. In common real estate projects risks analyses and management are on professional scale – but they are not in the tourism and leisure sector. The paper shows the specific risks of investing in leisure real estate integrated in a risk management model. An introduction to risk identification and risk measurement methods is given. Common used methods to value risks are explained in two case studies