Risk Analysis
Risk analysis is the systematic identification, quantification, and mitigation planning for all uncertainties that could negatively impact investment returns.
| Risk Category | Analysis Method |
| Market risk | Sensitivity analysis on prices and rents |
| Liquidity risk | Days on market analysis, buyer pool depth |
| Credit risk | Tenant financial strength assessment |
| Interest rate risk | Scenario analysis on rate changes |
| Operational risk | Expense variance analysis, management quality |
| Leverage risk | DSCR stress testing, covenant compliance |
| Risk Quantification | Metric |
| Probability assessment | Likelihood of adverse event |
| Impact magnitude | Financial loss if event occurs |
| Expected loss | Probability times impact |
| Value at risk | Maximum loss at X% confidence level |
| Stress testing | Performance under extreme scenarios |
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