Operations Risk

Operations Risk

In the Operations Phase there are three main aspects to Risks – Physical Asset, Marketing and Service.  All these 3 components will have direct impact on business cash flow, either in regards to generating revenue and or operating costs.

Physical Asset

Usually when one thinks of a development going into operations immediately they identify the need to do maintenance on the physical property.  This includes the daily cleaning to making sure the mechanical systems are in good working order and undergo the required periodic servicing.


Operations phase marketing is primarily for income properties.  Depending on the type of property it can be firstly the marketing to attract the right tenants so the overall mix is correct and hence attractive to consumers.  The additional marketing involves the marketing directly to consumers, which could also include the running of special events and promotions.


In all development operations there is an interface with users / consumers.  Sometime it is the human element of a development that people remember most in a positive or negative way. Well trained employees can are the frontline to managing operations risks with the general public.

This is the last brief in the series of identifying Overall Development Risks.  In a future post we shall cover the risk management methods for each part.

This post is contributed by Jiwa Studio.

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