RISK MANAGEMENT IN THE OPERATION OF APARTMENT BUILDINGS: TECHNICAL SAFETY, INSURANCE AND CONTROL

ABSTRACT

The article analyzes the risk profile of the housing stock of the Republic of Uzbekistan, considering the age and deterioration of buildings, the condition of utility networks, and institutional factors of apartment-building management. Based on statistical data, regulatory documents, and academic literature, the study identifies major risk groups: technical, structural, electrical, gas, fire, social-managerial, financial, and natural-technical. The research reveals systemic issues such as insufficient technical certification, low levels of insurance protection, irregular preventive maintenance, and weak oversight by management organizations. A classification of risks by their causes and mechanisms of manifestation is proposed. The results justify the need for a multi-level risk-management model integrating monitoring, preventive measures, economic assessment of resilience, and institutional strengthening of control mechanisms.

АННОТАЦИЯ

В статье анализируется состояние рисков жилищного фонда Республики Узбекистан с учетом возраста и износа зданий, состояния коммунальных сетей и институциональных факторов управления многоквартирными домами. На основе статистических данных, нормативных документов и учебной литературы исследование выявляет основные группы риска: технические, структурные, электрические, газовые, пожарные, социально-управленческие, финансовые и природно-технические. Исследование выявляет системные проблемы, такие как недостаточная техническая сертификация, низкий уровень страховой защиты, нерегулярная профилактика и слабый контроль со стороны управляющих организаций. Предлагается классифицировать опасности по их причинам и механизмам проявления. Результаты обосновывают необходимость многоуровневой модели управления рисками, сочетающей мониторинг, превентивные меры, экономическую оценку устойчивости и институциональное укрепление механизмов контроля.

Keywords: Housing stock, operational safety, technical risks, utility networks, fire risks, gas risks, structural deterioration, monitoring, insurance, risk management, apartment buildings, prevention, stability, accidents, seismic hazard, property management, modernization, infrastructure, financial risks, social risks, control, diagnostics, certification, utilities, reliability.

Ключевые слова: жилищный фонд, эксплуатационная безопасность, технические риски, инженерные сети, пожарные риски, газовые риски, износ конструкций, мониторинг, страхование, управление рисками, МКД, профилактика, устойчивость, аварии, сейсмоопасность, управление недвижимостью, модернизация, инфраструктура, финансовые риски, социальные риски, контроль, диагностика, паспортизация, коммунальные услуги, надежность.

INTRODUCTION

The housing stock represents the totality of residential buildings and engineering systems that provide living conditions for the population. For management purposes, it includes buildings, utility networks (water, heating, electricity, gas), elevators, and common-use facilities. The operational safety of the housing stock depends on its structural age, technical deterioration, and compliance with modern standards. According to the State Statistics Committee, as of January 1, 2025, Uzbekistan had approximately 7.6 million apartments/houses and 46,000–47,000 multi-apartment buildings, with a considerable share constructed before 1990 [4].

Aging buildings substantially increase the likelihood of failures, emergency repairs, outages, and vulnerability to external factors such as weather and seismic impacts. International assessments show that in post-Soviet countries up to 30% of the housing stock is more than 30–50 years old, requiring systematic modernization. These structural characteristics fully apply to Uzbekistan [14].

LITERATURE ANALYSIS

Popelnyukhov’s research emphasizes that traditional reliance on insurance as the sole tool for housing-sector risk management is insufficient in a market economy. The author argues for multi-level classification and the introduction of economic-mathematical models that assess the sustainability of management organizations, combined with preventive investments and internal control [8].

Zhidkikh develops methodological foundations for evaluating investment risks in construction projects, highlighting the limited availability of tools to guarantee long-term operational safety. Her findings confirm the effectiveness of combining self-insurance with traditional insurance instruments [18].

Berzhinskaya’s work focuses on the reliability of residential buildings in seismically active regions. The author reveals deficiencies in technical certification, risk forecasting tools, and integration of safety issues into regional programs. The study justifies the development of analytical methods for diagnostics and prioritization in housing-stock management [2].

METHODOLOGY

The research relied on the integration of analytical and system-structural approaches:

1. Structural-functional analysis to examine the housing stock as a socio-technical system.
2. Classification method to systematize risks by causes and mechanisms.
3. Statistical analysis using data from the State Statistics Committee, Ministry of Emergency Situations, utility operators, and management-company inspection reports.
4. Content analysis of scientific studies in risk management.
5. Benchmarking comparing Uzbekistan’s practices with international analogues.

DISCUSSION AND RESULTS

In the Republic of Uzbekistan, deficiencies in the multi-apartment building maintenance system have been identified, affecting all stages of the building's lifecycle. The following analysis will examine the institutional and organizational factors that contribute to risks at each stage, from technical maintenance to financial support.

Table 1.

Types of risks by types of defects

Main problems and examples of technical safety in Uzbekistan

Technical safety and typical vulnerabilities. Technical safety aims to prevent emergencies during the operation of buildings and systems [6; 10]. In Uzbekistan, key vulnerabilities include:

• deterioration of structures and engineering networks (corroded pipes, outdated wiring, worn-out elevators) [13];
• lack of up-to-date technical passports;
• irregular preventive maintenance due to limited financial and organizational resources.

Accidents and operational incidents

Fires. In 2022–2023, around 10,000 fires occurred annually; in January–August 2024, about 6,600 were recorded. Faulty electrical wiring caused approximately 41% of fires in 2024, making electrical risk the leading cause of accidents [16].

Power outages. Failures in substations and transmission infrastructure have caused outages affecting several thousand households (e.g., 3,000 in Tashkent in August 2024) [7].

Gas accidents. Localized gas interruptions and pipeline damage have repeatedly left dozens or hundreds of homes without gas [15].

Problems with risk management, insurance and oversight

Current risk-management mechanisms remain fragmented. Major issues include:

• absence of a unified system for monitoring physical deterioration and technical certification [13];
• low penetration of residential insurance—insurance premiums constitute only fractions of a percent of GDP [12];
• weak oversight: inspections in 2025 revealed financial misappropriation totaling approx. 25.9 billion soums in 83 organizations [5].

This undermines preventive maintenance and increases operational vulnerability.

Classification of risks during operation of apartment buildings, their causes and by location, mechanism of occurrence

Risks can be classified into two categories, more precisely by the reasons for their occurrence (technical, human, operational, institutional, financial, natural-technical), and by the location and mechanism of manifestation (structures, utility networks, household appliances, public spaces).

Figure 1. Classification of risks by their causes of occurrence and by location and mechanism of manifestation

A. For reasons of occurrence (By causes)

Technical (infrastructure) risks corrosion, outdated materials, lack of major repairs [13].

Electrical and gas risks overloaded networks, unauthorized connections, faulty panels. The Ministry of Emergency Situations and departmental reports have recorded that faulty wiring remains the leading cause of fires, in 2024, approximately 41% of fires were caused by this fault.

Figure 2. Electrical fire occurrence process

Operational/human risks improper handling of appliances, poor management supervision.

Figure 3. Gas leakage and explosion process

Institutional and financial risks low collection rates, misuse of funds, insufficient insurance [5].

Natural-technical risks weather impacts, water-main ruptures, seismic hazards. Examples: flooding, damage to facades and roofs, landslides.

Figure 4. Structural collapse process

B. By place/mechanism of manifestation

Load-bearing structures: cracks, façade detachment, risk of collapse.

Elevators: in 2021–2022 five deaths were recorded; in 2025 more than 37,000 malfunctions were identified in Tashkent alone [11; 16; 18].

Utility networks: frequent failures in water, sewerage, heating, gas, and electrical systems.

Fire risks: in 2023, 10,204 fires caused 79 deaths and significant material damage [1; 17].

Seismic risks: approx. 70% of new construction projects do not meet seismic-resistance standards [3].

These findings confirm systemic vulnerabilities in infrastructure and management. This means that in the event of a strong earthquake (and Uzbekistan belongs to seismically active regions), there is a high risk of destruction, damage to load-bearing structures, falling fencing elements, loss of housing, injury and death of people. Although it is difficult to find exact figures on the number of collapses in residential buildings in recent years, the problem is recognized at the state level, which underlines its systemic nature.

Conclusion: structural and seismic risks are especially dangerous for old or improperly built housing stock in the absence of modernization and reinforcement of the structure, the risk of destruction is extremely high.

CONCLUSIONS

Uzbekistan’s housing stock is characterized by a high share of aging buildings, increasing risks of accidents and reducing the reliability of engineering infrastructure. The most common emergencies arise from electrical faults, worn-out utility networks, and outdated gas systems. The absence of technical passports, insufficient insurance coverage, and irregular inspections heighten financial and social vulnerability.

Institutional risks particularly weak oversight and misappropriation of funds—significantly affect service quality. The analysis of statistics shows that electrical fires are the most frequent accidents, while structural collapses present the highest catastrophic potential.

Ensuring operational safety requires a multi-level risk-management framework that incorporates regular diagnostics, modernization of engineering systems, strengthened supervisory mechanisms, increased homeowner participation, and the expansion of insurance tools. The study's findings support the development of public policies aimed at modernizing the housing stock and improving the resilience of apartment buildings.

Refernces:

1. About 80 people died in fire-related incidents in Uzbekistan last year. — Retrived from: https://m.kun.uz/en/news/2024/02/01/about-80-people-died-in-fire-related-incidents-in-uzbekistan-last-year (accessed date: 15.11.2025).
2. Berzhinskaya Lidiya Petrovna, Nadezhnost' regional'nyh tipov zdanij pri sejsmicheskih vozdejstviyah (na primere Bajkal'skogo regiona) [Reliability of regional types of buildings under seismic impacts (using the Baikal region as an example)] Special'nost' 05.23.01 — Stroitel'nye konstrukcii, zdaniya i sooruzheniya, avtoreferat dissertacii kandidata tekhnicheskih nauk, Ulan-Ude — 2006. — st. 22. [in Russian]. 
3. CabMin: About 70% of housing construction objects in Uzbekistan are not earthquake resistant. — Retrived from:  https://live.kun.uz/en/news/2023/08/16/cabmin-about-70-of-housing-construction-objects-in-uzbekistan-are-not-earthquake-resistant (accessed date: 25.11.2025).
4. How many apartments (houses) are there in the Republic of Uzbekistan? — Retrived from: https://stat.uz/en/press-center/news-of-committee/60852-o-zbekiston-respublikasida-kvartira-uy-lar-soni-qancha-3 (accessed date: 15.11.2025).
5. Kolichestvo pozharov v Uzbekistane snizilos' na 4,7 % [The number of fires in Uzbekistan has decreased by 4.7 %.]. — Retrived from: https://uz.kursiv.media/2024-09-11/kolichestvo-pozharov-v-uzbekistane-snizilos-na-47/ (accessed date: 15.11.2025) [in Russian].
6. Kvantex — Retrived from: https://kvantex.eag.su/news/vidy-tekhnicheskoj-bezopasnosti/ (accessed date: 15.11.2025).
7. Over 3,000 households in Tashkent disconnected from electricity due to a malfunction. — Retrived from: https://kun.uz/en/news/2024/08/15/over-3000-households-in-tashkent-disconnected-from-electricity-due-to-a-malfunction (accessed date: 15.11.2025).
8. Popel'nyuhov S.N. Vybor modelej upravleniya riskami v ekonomicheskoj deyatel'nosti upravlyayushchih zhilishchnyh organizacij, obsluzhivayushchih zhilishchno-kommunal'nyj kompleks : dissertaciya ... kandidata ekonomicheskih nauk [Selection of risk management models in the economic activities of housing management organizations serving the housing and communal complex, dissertation]: 08.00.05 / Popel'nyuhov Sergej Nikolaevich; [Mesto zashchity: GOUVPO "Moskovskij gosudarstvennyj stroitel'nyj universitet"]. — Moskva, 2006. — 241 s. 
9. Retrived from: https://kun.uz/ru/news/2025/11/11/v-liftax-mnogoetajnyx-domov-tashkenta-vyyavleno-boleye-37-tysyach-neispravnostey (accessed date: 15.11.2025).
10. Retrived from: https://laboratoria.by/stati/tekhnicheskaya-bezopasnost (accessed date: 15.11.2025)
11. Retrived from: https://repost.uz/ujasnaya-tema (accessed date: 15.11.2025).
12. Retrived from: https://www.fitchratings.com/research/insurance/uzbek-insurance-seeks-balanced-growth-01-03-2024 (accessed date: 11.11.2025).
13. Rules for assessing the physical deterioration of residential buildings, building codes and regulations, KMK 2.01.16-97. — State Committee of the Republic of Uzbekistan for Architecture and Construction Tashkent, 1997, art. 66.
14. United Nation's report, Country profiles on housing and land management Uzbekistan. — United Nations New York and Geneva. — 2015. — P. 150;
15. V Tashkente Cobalt povredil gazoprovod. Desyatki domov ostalis' bez gaza [Cobalt damaged a gas pipeline in Tashkent, leaving dozens of homes without gas. — Retrived from: https://podrobno.uz/cat/proisshestviya/v-tashkente-cobalt-povredil-gazoprovod-desyatki-domov-ostalis-bez-gaza/ (accessed date: 16.11.2025) [in Russian].
16. V Uzbekistane s nachala goda proizoshlo okolo 8 tysyach pozharov [There have been about 8,000 fires in Uzbekistan since the beginning of the year]. — Retrived from: https://upl.uz/incidents/46384-news.html (accessed date: 15.11.2025). [in Russian]. 
17. Za dva goda v liftah zhilyh domov pogiblo 5 chelovek [Five people have died in residential elevators in two years]. — Retrived from:  https://nuz.uz/2022/12/19/za-dva-goda-v-liftah-zhilyh-domov-pogiblo-5-chelovek/ (accessed date: 25.11.2025) [in Russian].
18. ZHidkih I.N., Nauchno-metodicheskie osnovy upravleniya riskami investicionnyh proektov promyshlennyh predpriyatij: na primere stroitel'nogo kompleksa, dissertaciya [Scientific and methodological foundations of risk management of investment projects of industrial enterprises: on the example of the construction complex, dissertation] i avtoreferat Vysshej attestacionnoj komissii Rossijskoj Federacii ot 08.00.05.2009. —162 s. [in Russian].