Project Risk Management for Community Centers

This assignment focuses on risk management within the context of a community center construction project. Students identify five potential risks, analyze their impact, and propose mitigation strategies to ensure successful project completion and stakeholder satisfaction. The analysis considers financial, environmental, strategic, operational, and project management risks.

Project Management

TABLE OF CONTENTS
task 1................................................................................................................................................1
e) Critical analysis of FIVE different risks that could affect your project..................................1
f) Strategies to minimize risks in order to meet stakeholder expectations..................................2
references.........................................................................................................................................4

TASK 1
e) Critical analysis of FIVE different risks that could affect your project
Project manager of Wandsworth council in London is accountable for managing a
Community Centre building project. Project management process will be associated with
different types of risks which can affect final findings and overall objectives of the whole
projection. Projects risks may effect on scope, schedule, cost and quality of the project
(Andersen, Dysvik and Vaagaasar, 2009). So, at the time of project management manager needs
to focus on the following uncertainties:
1. Financial risks: Lack of the financial resources for completing the project in effective
manner may include in the major risk for this community center project. As per the given
project plan developing a building of community centre will require huge investment for
purchasing required resources. Including this, financial risk may occur due to price
inflation of the construction material and inappropriate estimation of cost, etc. Lack of
funds may affect the project budget in negative manner as well as can also affect the total
quality of the project (Kumaraswamy, 2011).
2. Environmental risk: Construction of building for community center may also affect by
the weather conditions. So, environmental risk can also affect the findings of the project.
This types of risks include natural disasters like earthquake, heavy rains, inappropriate
weather conditions can affect the working situations for workers and entire construction
project. Sometime, environmental risk can terminate the project (Managing project risks,
2015).
3. Strategy risk: In appropriate planning is one of the major strategic risk for this
construction project. This risk can occur due to the inappropriate formulation of project
scope, schedule and plan. It can affect the execution and implementation process of the
project in negative manner. Overall findings and result of project can affect.
4. Operational risk: This risk is associated with operation and production process of
construction project in which project may suffer from unavailability of resources such as
lack of personnel, material, machinery and technology, etc (Kloppenborg, 2011). Along
with this, inappropriate allocation of resources may also occur the situation of operational
risk which can harm the entire project management process and system. Operational risks
can increase time and cost of the project.
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5. Project management risk: If, project manager of Wandsworth council is not capable
enough to manage different tasks and activities of the project then project may suffer
from project management risk. Inappropriate leadership, management and
communication are major factors which can negatively affect the different aspects of the
project such as scheduling, coordination, quality and control, etc. Due to this risk
Wandsworth council cannot attain all objectives and goals in effective manner (Hobbs,
2009).
f) Strategies to minimize risks in order to meet stakeholder expectations
All the above discussed risks can be minimized by the following strategies:
 Financial risk of construction project can be managed by appropriate planning of funds.
Project manager needs to focus on available and required sources of finance. Along with
this, company needs to manage its financial budget by low cost financial resources such
as long term bank loan and leasing of machinery, etc. all these strategies will help in
reducing unnecessary cost of financial resources and increase the availability of funds for
building of community centre (Risk Management, 2015). Along with this, appropriate
budgetary technique such as activity based costing method will also help in allocating
financial resources on different activities of project in effective manner.
 Project manager should focus on appropriate strategies for forecasting appropriate
environment and weather condition of London at the time of construction. It helps in
managing environmental situations for construction project. Along with this, project
manager needs to develop a preplan for managing such types of situations (Andersen,
Dysvik and Vaagaasar, 2009).
 For reducing the negative impacts of strategic risks project manager should involve
skilled and experienced employees for developing plans and strategies. Appropriate skills
and knowledge will help in improving scope, objectives, goals and planning of project
and that will reduce the negative impacts of strategies risk (Kumaraswamy, 2011).
 Project manager needs to apply different tools and techniques for managing operation and
production activities and these techniques include PERT, CPM, Gantt chart, WBS, etc.
All these techniques will help in managing different operations of this project.
 Project manager of Wandsworth council needs to apply participative leadership style and
principles of management for reducing the impacts of project management risk. Along
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with this, manager should use appropriate channel of communication such as emails,
SMS and telephonic communication for communicating important information to team
members (Hobbs, 2009).
All these strategies will help in minimizing the impacts of risks on community center
project of Wandsworth council.
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REFERENCES
Books and journals
Andersen, S. E., Dysvik, A. and Vaagaasar, L. A., 2009. Organizational rationality and project
management. International Journal of Managing Projects in Business. 2(4). pp.479 –
498.
Hobbs, P., 2009. Project Management. Dorling Kindersley Limited.
Kloppenborg, T., 2011. Contemporary Project Management. 2nd ed. Cengage Learning
Kumaraswamy, M., 2011. Editorial: integrating infrastructure project management with its built
asset management. Built Environment Project and Asset Management. 1(1). pp.5 – 13.
Online
Managing project risks. 2015. [pdf]. Available through: < http://www.free-management-
ebooks.com/dldebk-pdf/fme-project-risk.pdf>. [Accessed on 8th January 2016].
Risk Management. 2015. [pdf]. Available through: <
http://agile.csc.ncsu.edu/SEMaterials/RiskManagement.pdf>. [Accessed on 8th January
2016].
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