Risk Management of Energy Efficiency Retrofit Project

The paper mainly reflects on managing risks that occur in retrofitting modifications within the existing commercial buildings that generally may improve the energy efficiency or minimizing the existing demand. The main purpose of the project is to manage the risks as well as challenges that occur due to retrofit commercial buildings for improving the efficiency of the energy as well as for reducing the utilization of energy. The expected outcomes that are achieved by undertaking the risk management project in order to resolve the challenges that occur due to retrofitting commercial buildings for minimizing the utilization of energy are generally elaborated below. The ethical issues that are related to the project are also discussed.

Running head: PROJECT MANAGEMENT
Project: Risk management of energy efficiency retrofit project
Name of the Student
Name of the University
Author’s note

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Table of Contents
1. Project background......................................................................................................................2
2. Project purpose............................................................................................................................2
3. Expected outcomes of the project................................................................................................3
4. Methodology to be adopted and project schedule.......................................................................3
4.1 Selected methodology............................................................................................................3
4.2 Task List................................................................................................................................4
4.3 Work breakdown structure....................................................................................................6
4.4 Gantt chart.............................................................................................................................7
5. Risk assessment...........................................................................................................................8
5.1 Risk assessment matrix..........................................................................................................8
5.2 Identified risks.......................................................................................................................8
6. Ethics issues related to the project.............................................................................................12
Bibliography..................................................................................................................................13

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1. Project background
The paper mainly reflects on managing risks that occur in retrofitting modifications
within the existing commercial buildings that generally may improve the energy efficiency or
minimizing the existing demand. Retrofits are often utilized as an opportune time for installing
the distributed generation to a building however it arises number of risks including public health
risks as well as investment risks. It is found that retrofit project generally can create negative
impact on the public health and causes number of investment related issues. In order to resolve
these problems and for properly retrofitting commercial buildings, it is quite necessary to utilize
proper risk management plan. Risk management is mainly defined as one of the procedure of
identifying, evaluating as well as prioritizing risks that is mainly followed by coordinated as well
as economical application of various resources for minimizing, monitoring as well as controlling
the probability of unfortunate events so that retrofit of the commercial buildings can be done
quite properly.
2. Project purpose
The main purpose of the project is to manage the risks as well as challenges that occur
due to retrofit commercial buildings for improving the efficiency of the energy as well as for
reducing the utilization of energy. It is found that retrofitting commercial buildings generally
creates number of issues and problems including investment issues, public health issues as well
as maintenance issues. Moreover, negative impact on the archeological assets as well as heritage
may cause utilization of unproven methodologies, instruments as well as technologies. In order
to resolve the problems and for properly retrofitting commercial buildings, it is quite necessary
to use proper risk management plan.

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3. Expected outcomes of the project
The expected outcomes that are achieved by undertaking the risk management project in
order to resolve the challenges that occur due to retrofitting commercial buildings for minimizing
the utilization of energy are generally elaborated below:
Lowering the cost of investment: The cost of investment can be reduced by properly
using proper strategies so that retrofitting commercial buildings can be done economically and in
a very much convenient method.
Reducing impact on public health: The impact on public health can be reduced by
using proper methods so that the amount of indoor radon concentration can be reduced and also
helpful in reducing the global emission so that the public health does not get impacted.
Reducing negative impact: The negative impact that generally occurs on heritage as
well as archaeological assets that mainly occur due to usage of various types of unproven
methods, technologies as well as instruments can be resolved so that retrofitting can be done
effectively.
4. Methodology to be adopted and project schedule
4.1 Selected methodology
It is found that agile project methodology is mainly utilized in order to develop the
project successfully. The agile methodology that is selected for this particular project will
generally focus on the project, investigation strategies that are generally adopted for managing
the risks that occur due to retrofitting commercial buildings. It is found that in agile project

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methodology, testing is generally done in the development cycle of the project to make sure that
the project will be delivered properly and it further helps in reflecting the problems that the
project is generally facing while retrofitting the commercial buildings for reducing the utilization
of energy. In addition to this, it is found that agile project teams are quite efficient and therefore
they work properly in a collaborative culture for generally proper ripple effect. Moreover, agile
methodology includes number of practices, tools as well as artefacts for improving the
predictability of the project for keeping the sprint length as well as development team allocation
throughout the project.
4.2 Task List
The lists of tasks that are required to be executed in order to manage the risks of energy
efficiency retrofit project are generally reflected in the table below:
WBS Task Name
0
Risk management of energy efficiency retrofit
project
1 Initiation phase
1.1 Development of business case
1.2 Undertaking feasibility study
1.3 Establishment of charter
1.4 Appointing team members
1.5 Milestone 1: Completion of initiation phase
2 Planning phase
2.1 Development of project plan

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2.2 Development of resource plan
2.3 Development of financial plan
2.4 Quality plan
2.5 Risk management plan
2.6 Milestone 2: Completion of planning phase
3 Execution phase
3.1
Determining the risks that are associated with
retrofitting project
3.2 Analyzing the project risk
3.3 Evaluating and ranking the risks as per priority
3.4 Treating the risks with mitigation strategies
3.5 Monitoring and reviewing the risk
3.6 Milestone 3: Completion of execution phase
4 Closure phase
4.1 Project review
4.2 Documentation
4.3 Stakeholder sign off
4.4 Milestone 4: Completion of closure phase

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4.3 Work breakdown structure
Figure 1: Work breakdown Structure
(Source: Created by Author)

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4.4 Gantt chart
The Gantt chart of the project generally reflects that risk of the energy efficient retrofit
project can be completed in 64 days.
Figure 2: Gantt chart
(Source: Created by Author)

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5. Risk assessment
5.1 Risk assessment matrix
The risks that occur within the energy efficient retrofit project are generally reflected
with the help of risk assessment matrix that is provided below:
Consequences
Likelihood Catastrophic Major Moderate Minor Insignificant
Almost
certain
Investment
cost
Likely Slippage of
schedule
Improper
treatment of
risk
Possible Improper
treatment of
risk
Unlikely
Rare
5.2 Identified risks
Slippage of schedule
Hazards Asses risks Control
What could cause
harm?
What could go wrong? C L Leve
l
What
controls are
required?
If the schedule of the The project manager will M L High In order to

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project is not properly
managed or tracked then
it will be quite difficult to
finish the project on time
face difficulty in managing
the project progress and as a
result there is high chance
of project delay.
mitigate the
challenges, it
is important
to track the
schedule of
the project on
a weekly
basis so that
the entire
schedule can
be kept under
control for
avoiding
slippage.
Investment cost
Hazards Asses risks Control
What could cause
harm?
What could go wrong? C L Leve
l
What
controls are
required?
It is identified that high
amount of investment is
generally required in
High investment within the
project generally can create
number of financial issues
M AC High It is quite
necessary to
manage the

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order to manage the
energy efficient retrofit
project successfully.
and challenges which
further can create
obstruction for the project
progress.
budget
properly so
that the
energy
efficient
retrofit
project can
be completed
within
minimum
project.
Improper treatment of risk
Hazards Asses risks Control
What could cause
harm?
What could go wrong? C L Level What
controls are
required?
If the risks that are
identified within the
project are not properly
treated then it can cause
number of challenges in
progress.
Improper risk treatment
can generally create
number of issues and
challenges in successfully
progressing with the
project which further
M P Medium The
treatment of
risk must be
properly
performed
for avoiding

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causes project delay. the issues
that are
associated
with the
project.
Improper monitoring of risk
Hazards Asses risks Control
What could cause
harm?
What could go wrong? C L Level What
controls are
required?
If the risks are not
properly monitored then
it can cause number of
problems as well issues
in properly handling the
project that further
cause project delay.
Improper monitoring of
project can cause delay as
well as financial risk in the
project.
M L Medium It is quite
necessary to
hire
experienced
team
members for
properly
monitoring
the project
risks and
challenges.

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6. Ethics issues related to the project
The ethical issues that are related to the project are generally elaborated below:
Conflict of interest: As the project generally involves large number of staffs as well as
employees therefore there is high chance that the views as well as interests of the team members
generally differs from one another that further causes ethical problems. Therefore, as a project
manager, one need to make sure that all the parties must understand the standards of the
company properly for reducing the level of conflict.
Workplace culture: Workplace environment are considered to be respectful however if
the culture of the workplace is not appropriate then it can cause number of challenges and issues.
Proper acceptable culture within the organization should be maintained for minimizing the
ethical issues within the project and for performing the work of the project quite effectively.
Health and safety concerns: In this project, the pressure is quite high which causes
number of ethical issues as well as challenges. In order to resolve the issues, the stakeholders
need to ignore as well as conceal issues that jeopardize the health and safety of the project team.
Accountability: If the situations within the project are not recognized then it generally
can cause number of ethical issues and problem. In order to resolve the issue, the project
managers must properly understand the significance of owing their own mistakes for
successfully recognizing the situations appropriately.

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