||A total number of 50 international investors (e.g. public listed real estate companies, investment funds, private equity investors, pension funds) took part in this survey. Participants come from 16 different nations, with Germany accounting for 62 % of all participants. The average company has more than 250 employees. The few recent empirical studies – Hyss, S. (2006), Dr. Peter & Company (2007) and Schwenzer, J. (2008) - show that risk management in the real estate sector is lacking behind other industries. The present study is the first carried out on an international basis. Based on the empirical study, the risk management of the different investment vehicles is assessed in detail in seven chapters. First of all, the structure of investment vehicles and the integration of risk management in the corporate structure are analysed. As a second step, the risk management process composed of risk identification, risk evaluation and analysis, risk steering, risk reporting and risk controlling is discussed. In the next section, risk management methods are analysed according to their relevance and importance for individual investors. Of particular interest are the methods used for risk identification, risk reporting and risk evaluation. In this connection, the possibilities and restrictions of the Modern Portfolio Theory and of property derivatives for risk reduction purposes are critically examined. Investors were asked to rank seven of the most important risks affecting real estate investments according to their relevance for the specific investor. A separate chapter discusses the use of ratings in the real estate business and the investor’s estimation of the quality of existing rating agencies and specific real estate agencies. In the last section investors lay out their view on the necessity of adjusting risk management as a consequence of the current real estate crisis.