**Author details**

382 Risk Management – Current Issues and Challenges

**3. Conclusion** 

that:

supply, thereby increasing the prices;

such as Perth, Sydney and Melbourne;

growing expatriate working community;

countries, including the UK, Spain and the US; and

given there was volatility in house price changes over time.

which close to 140% is towards the mortgage. An indication to the scale of vulnerability can become salient when the house hold income to debt and the annual change in established home price are compared. Figure 18 shows that there has been a somewhat volatile situation in the housing market in all capital cities during 2006-2011; yet, during the same period, the debt to income ratio seem to be approximately constant over time. The comparison shows the average households are not so vulnerable to at least a change in their income situation

The aim of this paper was to define risk and risk management in terms of real estate investment thus demonstrating the in depth nature and complexity of the process. Another aim was to conduct risk analysis of the Australian real estate market in particular, in terms of the global financial crisis – pre GFC, during GFC and post GFC. The review shows that risk analysis involves a number of steps with each step in turn involving another set of procedures. Risk analysis is a process that it is often ignored by investors particularly by the individual or smaller investors who tend to be more vulnerable. Similarly, risk management involves a number of processes and stages with steps and these have been outlined in the paper. A risk analysis is conducted here for investors in Australia real estate market. The results are rather interesting in that several conditional differences exist between Australia and the rest of the world. The factors identified that influence Australia's house price are different from the rest of the world; including for example the rather stricter and well regulated lending practices of Australia's financial institutions. A tight financial system regulation in Australia means a highly disciplined financial sector. The tougher regulation of the industry therefore prevents financial institutions from taking on excessive risks, contrary to the US counterparts. In fact, increasing house prices was identified in Australia after the crises of 2007-8; and this was associated with the changes in mortgage lending rates, rising family income, increasing overseas migration demand, government incentives to name a few. Together the market situation suggests that Australia is unlikely to face a US style housing bubble. The results of the risk analysis show

rising incomes and population growth ensure the demand for housing outpaces current

high capital growth in larger cities where there has been large population migration

high demand still exists for residential and commercial real estate to accommodate

 increased property prices has to many Australians increasingly seeking rental accommodation, making housing investment a healthy growth area for investors; higher growth rate in property investment in Australia - superior to most OECD Gurudeo Anand Tularam and Gowri Sameera Attili *Griffith University, Australia Science Environment Engineering and Technology [ENV], Environmental Futures Centre, Brisbane, Australia* 

### **4. References**

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Importance of Risk Analysis and Management –The Case of Australian Real Estate Market 385

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384 Risk Management – Current Issues and Challenges

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2004.

	- [31] OECD. Recent house price developments: the role of fundamentals. OECD economic outlook. 2006 Jan 19; 2005(2): 123-154.

**Chapter 17** 

© 2012 Botet, licensee InTech. This is an open access chapter distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use,

distribution, and reproduction in any medium, provided the original work is properly cited.

© 2012 Botet, licensee InTech. This is a paper distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

**Quality Risk Analysis:** 

Additional information is available at the end of the chapter

Jordi Botet

http://dx.doi.org/10.5772/50450

certain defense barriers of the body.

some people wanted to believe.

"in [2-5]".

taking decisions based on knowledge and science "in [1]".

knowledge management and quality risk management.

**1. Introduction** 

**Value for Money in the Pharmaceutical Industry** 

Pharmaceuticals play an important role in keeping people fit, but they can also put live at risk if they don't have the required quality. Contamination and mix-up may have a great impact on them because of their tiny active doses and because of the often precarious state of health of the patients, not to mention the existence of routes of administration, which skip

To cope with this problem "Good Manufacturing Practice" (GMP) was introduced in the 1960s with the intention of providing a kind of common quality baseline for all laboratories. GMP, however, consists of general rules, and as such, it can neither give an answer to every practical situation, nor replace the need to study and understand processes in depth, as

This is why the American FDA initiative on GMP, launched in 2002, underlined the need of

The ICH (International conference on harmonization of technical requirements for the registration of pharmaceuticals for human use) has given world-wide diffusion to this initiative and put it into practice by publishing several closely related Q (quality) guidelines

These guidelines have to be applied conjointly in order to ensure that the quality of a product is, first of all, developed and, then, monitored within a quality management system. This pharmaceutical quality system, as defined by ICH guideline Q10, has two "enablers":

Knowledge management is defined as *a systematic approach to acquiring, analyzing, storing,* 

*and disseminating information related to products, manufacturing processes and components*.

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QiAeC6K3JDA&usg=AFQjCNGpcAlAjmJeWptc7zFKMCKw0iJ5TQ
