Construction projects are usually risky but less complicated than the software defense and engineering projects. I chose this topic because construction projects directly involve using experts in construction and design to perform a project within a specific timescale. This project is about the creation of a new library for the school. The project manager will develop risk management that would plan, monitor and control the measures that are necessary to manage the possible risks. We need Checklists and sample of construction that will provide total insights into the vision of building a library and offers tools to do the job efficiently. A project manager is responsible for deciding on new development, analyzing the site, work with architects, evaluate the process and assessing the building's effectiveness so that project won't fail moving forward. Risk management plan for this project includes the finding all the potential risks, the chances of occurring those risk through the different phases, their effect and result on the project and have a strong response to those identified risks in the project.

Risk Management Planning

To plan and take the management of the library construction project, the project manager will recognize the presence of potential risks and actively manage them. The project manager will anticipate on the potential events that may impact on the project and develop the possible ways of dealing with these events (Papke-Shields, 2017). The project team has a responsibility of proactively managing the risks and increasing the chances of delivering a successful project within the budget and time as well as the project scope.

A Scope Statement and A WBS for the Project

The project manager will use a project charter, scope plan, and the requirements documentation to produce the project scope statement which would highlight the deliverables of the project and the activities needed to fulfill these deliverables (Reed, 2018). The WBS and the scope statement will serve as the benchmark against which the requests for the construction of the library or additional work will be considered. The project scope statement includes the following:

· Project Scope Description: This highlights the functions and the features of the project deliverables that the project would produce. It answers the query of the final product of the project instead of the reason behind the implementation of the project.

· Product Acceptance Criteria; These are the principles that are necessary to satisfy the expectations of the customers lead to the success of the project. They include the processes and the criteria for accepting the finished products, outcome or services. They also encompass accuracy, capacity, repair times, running costs and availability of the resources or the raw materials needed for the effective completion of the project.

· Project Deliverables: They include the building blocks for a project like the software and the documents needed to further the construction of the library.

· Project Exclusions: It includes the external effects of the project boundary.

· Project Constraints: There are three project constraints namely technological, physical and resource constraints.

· Project Assumptions: These are the deliverables that deduce the validity of the possible outcome of the project either positive or negative (Harrison, 2017). For instance, the project may need technological advancement and the assumption is that there will be an expert on technical skills.

Risk Identification

The project team will use a more disciplined method of identifying the potential risks to the construction of library project. This process would involve the use of checklists of the likely risks and assess the potential of the events that would cause the risks as well as their consequences to the project (Reed, 2018). The checklist for the risk will be based on the experience from the previous projects. These checklists will be helpful in the identification of the potential risks that are likely to reoccur as well as prepare the project team for the risk planning.

Another effective way of identifying the risks is by prioritizing the potential risks on the project. Some of the categories for the potential risks include technical risks, cost risks, customer risks, schedule risks, contractual risks and bad weather. Other categories include political risks, financial risks, people risks and environmental risks among others. The risks are either classify as positive and negative risks. The positive risks are the ones that create meaningful opportunities for the project while the negative risks will pose a great threat to the success of the project.

Positive Risks

Positive risks are opportunities for the project which is not a bad thing. These opportunities are uncertain, but favorable events because it will have a better impact on the project objectives. These positive risks tend to save cost and resources of the project. Regardless of all the effort to avoid, if positive risks happen then it can be treated and managed as opportunities. Some of the positive risks that the project team may encounter while constructing the library include the use of new technology to improve the performance of some of the tools used in the process. Secondly, there will need to increase value, therefore, increase the budget of the project (Papke-Shields, 2017). Third, the project manager may spend money and need to hire an expert who will empower the project team and endeavor success of the project. Fourth, the volume of the servers may increase therefore necessitating the need for IT personnel to improve value within the project. Sixth, there would be several interruptions in case of emergency. Seventh going under the initial budget for the project is a positive risk as the project manager would have saved spare dollar. The under-budget projects are means error in planning and managers try to avoid. However, when if it happens it can be an opportunity to reallocate resources to other area. Then, another risk is when your earning increases and profit is beyond the mark then the pre-tax money rules apply that would lead to the reduction of earnings. Finally, the project may be over-engineered that price may skyrocket.

Negative risks

Unlike positive risk, negative risks are considered as a threat for the project. Anytime project manager encounters negative risks, it need to be avoided, transfer or mitigate so that it would not create any hiccups on project completion. Some of the negative risks in this project includes the clients or the service providers refusing the design of the project. Second, the name of the domain being stolen by other companies. Third, the website for the project could be hacked by malicious people (McNeil, 2015). Fourth, the politicians may not grant the export license. Similarly, the ground condition may not be appropriate for the development of the project. Also, the first system interface may not be compatible with the project. Another great risk is the lack of physical space for the needed equipment. Similarly, the data rates for the appropriate image quality of the project may exceed the initial capacity as structured by the engineers. Also, regulators may come in with new requirements relating to the project. The project may be hindered by severe weather. Similarly, the project coordinator and the main programmer may quit on his or her duties in the middle of the project. Executing excessive tests for excellence and dealing with supplier who cannot guarantee the continuity of goods. Finally, lack of construction materials may impede the success of the project.

Qualitative Risk Analysis

Low Probability, Low Impact

The potential risks are characterized as both low likelihood and low impact are insignificant and can be considerably eradicated (Teller, 2014). The major concern of the project manager regarding these types of risks is to assess these factors to determine the chances of this likelihood or impact are increasing.

High Probability, High Impact

The risks that are classified as both high likelihood and high impact can cause the termination of a project of a severe failure if the project continues despite the risks. In this case, the project manager will determine whether the project should be stopped immediately, or the benefits of the projects are worth the potential risks.

High Probability, Low Impact

These are the kind of risks that come because of the indecisions concerning the components that lead to minor risks that could ultimately lead to great risks (McNeil, 2015). These encompass the uncertainties that relate with the actual cost of labor and raw materials used in the project, workforce probability, deliveries of equipment, preferences of the project manager and other uncertainties within the natural fluctuation of a project.

High Impact, Low Probability

High impact, low probability risks rarely occur, and therefore it is not easy to assign likelihood to them basing on past experiences. There is no information on this kind of risks.

They are not subjective assessments of probability.

Probability impact matrix

The probability-impact matrix plots the risks as threats and opportunities and these are classified as green risks(low), red risks(high) and yellow risks(medium).

	IMPACT
	TRIVIAL	MINOR	MODERATE	MAJOR	EXTREME
PROBABILITY	RARE	Low	Low	Low	Medium	Medium
	UNLIKELY	Low	Low	Medium	Medium	Medium
	MODERATE	Low	Medium	Medium	Medium	High
	LIKELY	Medium	Medium	Medium	High	High
	VERY LIKELY	Medium	Medium	High	high	High

Risk Register Table

The risk register template encompasses the traditional risk register columns as well as the columns recommended by the method used in the risk identification process.

Name	Category	Impact	Probability	Rating	Mitigation	Contingency
The legacy interface will not be the same in the new system	IT-GUI (graphical user interface)	2	40%	4	Employ a GUI specialist who previously worked on the same projects to develop the codes in a new system.	Write a manual on how to utilize the new interface and train the users on the steps in using the new interface.
The new system will not permit the employees to access their old files	business	5	20%	5	Run a new testing course with the underuses under the new system to ensure its compatibility with the new records.	Access the backup files on the DR servers.
Slow response	IT-Hardware	2	60%	6	Buy a different server which will handle the anticipated user load.	Rent cloud services that will grant a quick response time.
The new system cannot receive orders from new users	business	5	20	5	Create an interface that would allow conversation between the old users and the new users	Use a manual form to receive orders

Risk Response Planning

Proactive Risk Response Planning

The risk response planning will encompass figuring out the strategies of eliminating or reducing threats to the project. The response plan also aims at increasing the opportunities that would pose a positive impact on the project. The project manager will work to remove the threats before they happen as well as ensuring that opportunities occur. Similarly, the project manager should decrease the probability of threats and increase those of opportunities. For the complex projects that would not be completed, the project manager should develop a strategic contingency plan that would address the issue at hand. The response strategies for the negative risks include:

• Avoiding: Focusing on eradicating the cause of the risk.

• Mitigating: Reducing the impacts of the risks and threats.

• Transferring: This involves including a third party to help in the reduction of the risk.

The response strategies for the positive risks or the opportunities include:

• Exploiting: Changing the scope of the project to ensure the opportunity is exploited.

• Enhancing: This involves increasing the positive risk events and probabilities.

• Sharing: Includes allocating ownership to a third party to explore the opportunities.

A response plan for both the opportunities and the threats would be to accept the risk (Harrison, 2017). Accepting encompass leaving the action to be determined by the natural events. It may also involve a contingency plan to implement the risks if they occur. Accepting the risks must be talked about to the stakeholders.

Reactive Contingency Plan

Suppose the project fails because of the risk events, the project manager will develop a contingency plan to reduce the impacts and the loss of funds. This contingency plan will outline the funding program for the policy of payments and the standards of construction and how the project will divide the property and money among the project team and the stakeholders. The contingency plan will include:

• Financial agreements: This would add language to the contract concerning how the money will be allocated to the project team.

• Right to cancel: the project will include a clause that will outline the circumstances under which the project can be terminated to avoid unnecessary costs and damages (Teller, 2014).

• Construction standards: the contract will evidently highlight the construction standards that the project should comply with.

• No-fault project failures: the project manager will add a language to the contract that addresses the strategies for handling halts or delays in the construction of the library.

Conclusion

Risk management in project management is essential in realizing the success of the project. The project team can gain a lot of cash is they successfully proactively mitigate the potential risk events. The outcome will be that they reduce the potential impacts of these risk events and exploit the available opportunities. Since this library project is very critical for school and students, risk mitigation and acceptance would be the right choice to complete the project successfully. The risk is acceptable when the project is too critical to cancel the plan and administration prepared to deal with the threat. If there are no other risk responses identified for the risk encountered, it is suitable to accept the risk and move forward. Risk acceptance strategy could be passive that means it requires no action except to document the plan, waiting on threats or opportunities to work on as they occur. Whereas, the active acceptance strategy is to establish a contingency plan and replacement, adequate time and resources to handle the situation.

References

Hillson, D. (2012). Practical Project Risk Management, 2nd Edition. [Bookshelf Online]. Retrieved from https://online.vitalsource.com/#/books/9781567263671/

Harrison, F., & Lock, D. (2017). Advanced project management: a structured approach. Routledge.

McNeil, A. J., Frey, R., & Embrechts, P. (2015). Quantitative risk management: Concepts, techniques and tools. Princeton university press.

Papke-Shields, K. E., & Boyer-Wright, K. M. (2017). Strategic planning characteristics applied to project management. International Journal of Project Management, 35(2), 169-179.

Reed, A. H., & Angolia, M. (2018). Risk Management Usage and Impact on Information Systems Project Success. International Journal of Information Technology Project Management (IJITPM), 9(2), 1-19.

Teller, J., Kock, A., & Gemünden, H. G. (2014). Risk management in project portfolios is more than managing project risks: A contingency perspective on risk management. Project Management Journal, 45(4), 67-80.