Introduction
Whether you are investing in commercial real estate or any other form of investment, it is very important to know that there are risks involved. Among all possible risks, some risks can be measured and mitigated on time while there are unexpected risks. No one understands risks management more than Marika Tolz and here are some of the techniques that she uses to mitigate risks
Risk avoidance
The first thing that you can do is avoid the risks involved in real estate investment. While making your investment decisions, you must decide on whether the risks involved are bearable or not. Apart from that, you must also try to find out whether the risks outweigh all potential profits. If you are investing in a property that has disputes and is being avoided by tenants, you can simply avoid the risk by looking for another property. Always remember that in business, you should only take risks that are worth it.
Risk control
Some risks can be measured and controlled while other risks cannot be measured. Therefore, it is very important to come up with ways in which you can be able to deal with any market uncertainties. If your investment is in commercial real estate, you can mitigate possible risks by monitoring your property from time to time. You can also improve your property to mitigate risks.
Risk transfer
This is another technique that can easily be used to mitigate risks. Many investors have to lessen the burden of future risks by transferring them. For example, you can take the initiative to have commercial property insurance that will help you cover all possible future risks. That way, you will transfer all your risks to the insurance company.