Company Risk Case Study Examples

- Bringing in Unwanted Pests (roaches).
Bringing unwanted pests into the households compromises the occupiability value of the apartment. An apartment infested with pests is very unlikely to attract probable tenants in comparison with a clean apartment with no pests. The reason for investing in apartments is to generate returns from tenants through the collection of rent. Without tenants, the investor will not be able to get any returns. The presence of pests in the apartment increases the chances of tenants avoiding the premise.
- Damaging Premise (damaging the property).
The physical condition of the apartments is one of the parameters used to set the renting price or the buying price for the apartment. Apartments that have been worn out due to damage are likely to attract lower rental charges from tenants or lower purchase prices from prospective buyers.
- Natural Disaster (earthquake).
Natural disasters have the capability of destroying the apartments. Common natural disasters include earthquakes. Proper workmanship will ensure that the apartment can withstand natural disasters like earthquakes. Gurantee to clients that the apartment can withstand such natural disasters will lead to higher rental charges or selling price for the apartment.
- Violence between Tenants.
Tenants prefer a peaceful and serene environment that they can call home. A prospective client would be more attracted to a quiet and serene environment that guarantees his or her peace. Violence between tenants compromises the peace of the other tenants hence increases their chances of moving out to new premises.
- Trespassing.
Privacy is a key consideration sought by tenants and other probable property owners. Well secured property that offers the desired levels of privacy is likely to attract high paying clientele.
- Thief.
High crime crates are deterrent to tenants. Tenants would prefer a crime free environment that would guarantee their own safety and that of their property.