Risk-based Approach in Real-Estate Investment

I was introduced to Risk-based Approach while working in the Life Science industry in the Computer Systems Validation space to identify and manage risks and ensure quality, safety and compliance. Its quite fascinating to see the exact same concept applies to all forms of investment as well – including Real Estate Investment, stocks, Bonds etc. The difference here though is the Risk subject – that’s financial in nature. Assuming the challenges around home affordability isn’t going away anytime soon, first-time home buyers or investors are encouraged to learn and analyze Risk-Adjusted Returns while making key investment decision. This appears to be a parallel concept to the proven Risk-based Approach in Life Science industry for decades. Since the Risk-based Approach has done wonders to enable pathbreaking therapies that saved millions of lives, investors can potentially draw a parallel and use Risk-adjusted Returns – as a vital tool to make measurable investment decisions.