Can You Manage Market Risk or Just Mitigate It?
Every risk seems to be dumped into the nebulous category of “market risk” – the great unknown risk that attends business ventures operating in a market economy. For the purposes of this page’s discussion, we will dispense with the common and focus on the specific – the risk that advances in technology and/or business innovations introduced into the local market of a given business will create changes in competition that reduce the income-generating potential of the given business’ income-producing capital assets.
Market analyses (i.e.: feasibility studies) are as much art as science it is said. Do you wonder why? One of the critical considerations is the forecast window and the reality is that any forecast beyond the 24-month horizon in the CRE industry becomes nothing more than a guess. The secret is that 24-month window. We call it the “Zone Forecast Period” because we have a very high confidence of potential market disruptions that can occur over that period and what those market disruptions may in fact do to impact a property’s business performance. If you think about this issue, you see a golden opportunity if you just had the technology that would allow you to continually survey market conditions on a forward-looking, rolling basis. Even better, if you could do it every month for the life of the investment, you could provide proactive market risk prevention by having up to 24 months to make changes or make an orderly exit.
That Future is Here
The Rainmaker Analytics iCREDIT system gives you this benefit but it is only one of the minor benefits of this end-to-end solution for managing risk. iCREDIT provides the luxury of having the same level of due diligence that went into the pre-funding underwriting take place each and every month after funding – for the life of the investment. The advanced analytics, AI and program reporting design make it more than affordable. iCREDIT can be demonstrated to be a net zero cost to every subscriber. Find out how it all works and how you can benefit from seeing into the future by having a call with one of our advisors today.