Risk Management In Project: A Case Study Of New Academic Building Project At Murdoch University

Literature Review

Risk management is a process to identify, control, and assess all threats to the earnings and capital of the organization. Such risks stem from several sources that include legal liabilities, natural disasters and accidents, financial uncertainties, errors of strategic management, and technology issues. A successful program of risk management helps the firm consider the overall range of all risks. Risk management examines all relationships between all risks and cascading impact of those risks upon the strategic goals of the organization (Xia, et al., 2018). Such a holistic approach for managing such risks is enterprise risk management (ERM) the emphasis to anticipate and understand all risks over the organization. ERM emphasizes the overall importance to manage all positive risks. The positive risks are the opportunities that can increase the overall business value or could damage the organization. ERM aims to eliminate every risk and to preserve organizational value by taking smart risk decisions.

Risk management within the project is a process that a project manager uses for managing every potential risk that could affect the project both negatively and positively. The aim of this risk management is minimizing the overall impact of such risks. A project manager doesn’t know all the risks involved within a project. Due to such uncertainty, this risk management needs an in-depth and serious approach. This process of risk management includes identifying all risks, analyzing those risks, and responding to all risks that could arise throughout the overall lifecycle of the project. It is done by limiting all consequences of those risks, such that the objectives of the project could be met properly. It is also crucial to include risk management in all planning processes (Chatterjee, et al., 2018). This paper will include a report about the risk management of this new academic building project. For the report, data would be collected regarding all the risks involved for understanding every sustainability requirement and maintenance requirement of this academic building project.

The New Academic Building (NAB) for Murdoch University would be the first huge-scale mass engineered building in Perth. It is marked as the beginning of the visionary transformation set for unlocking this campus center, providing the new address for this university, and consolidating the overall academic core. NAB helps to position this university in pursuing growth in research as well as education. This project explores all potentials of some highly adaptable and flexible grid that would accommodate all future requirements of the learning along with teaching within the Murdoch University. The close collaboration between sustainability, engineering, and architecture combines in delivering some new vibrant cores for this campus (Shayan, et al., 2019). Collaborating with the local studios Officer Woods, Aspect Studios, Silver Thomas Hanley, and The Fulcrum Agency, this university lead the design reflecting all characters of Western Australia along with creating the bush campus of this university.

NAB is part of this master plan of this university and is a transformational project for this Perth Campus. The design of this project elevates learning as well as teaching spaces, resolves all issues of long-standing access, and creates a new address to this campus. A successful along with a strong spine provides activity as well as links and enhances legibility as well as cohesion (Vladimirova, et al., 2018). The project team maintains all characters of this university by responding to all existing modernist architectures and echoing its materials, shape, and form. This design helps to maintain cohesion along with integrating several past disjointed spaces as well as buildings. It brings some innovative presence that helps to create a vibrant core as well as unlock all potentials of such existing spaces. NAB along with the surrounding landscape helps to create the campus with several opportunities for social interaction (Abazid & Harb, 2018). The designated industry engagement and community spaces help to promote wider connection among the community and Murdoch University.

NAB follows the creative model of a warehouse which provides a highly adaptable as well as flexible core. The model totally transforms how learning would be executed along with allowing both internal flexibilities as well as technical performance over the overall lifecycle of this building. With the help of this consultation process with this university, the management has identified the need for spaces encouraging huge format collaborative learning. This building includes several industry collaboration facilities like artificial intelligence and augmented reality studios for allowing the students in interacting with the industry along with learning skills for tackling all scenarios of the real world (Sivagami & Sarath, 2018). All activities’ diversity within the building helps to incorporate learning along with teaching spaces between academic workplaces and peer learning, community, student services, provide higher amenity, along with industry engagement areas. This design helps to unlock the renovation of the library, providing much more areas for this peer learning, and expanding the overall campus.

A unique feature of this NAB is the use of the famous engineered timber frame. This project makes feel at home within this bush campus of this university by marking the first huge building of timber within Western Australia. Through several workshops with all clients, the management of this university shared the vision for this iconic construction of timber. This structure of timber drove the planning decisions that allows placing huge student spaces within this building’s upper level. The design found the functional balance for incorporating concrete while showing as well as maximizing timber throughout (Omer, et al., 2021). There is the use of laminated timber columns as well as beams along with cross-laminated floor panels of timber, for utilizing the plantation-grown timbers as the replacement for the traditional concrete as well as steel structures for most of the building. With the increased opportunities along with a lower carbon footprint for the natural ventilation, this structure of timber contributes to this building’s environmental sustainability along with would receive the World Leadership Stat Green rating. The management of this project has harnessed the overall technical capabilities of this structure of timber with all benefits of a future-proof and flexible design.

This NAB provides the students of Murdoch University with new huge collaborative learning areas, a range of memorable informal spaces for the students, bespoke opportunities of retail, along with experimental technology labs. This building would create the new gateway into this center of this campus as well as with the mass engineered structure of timber and Greenstar performance, along with showcase the vision of this university for the student-centered and sustainable future (Tepeli, et al., 2021). This Murdoch University prides itself on the bush campus having a strong master plan of 20 years, and the management is focused on this delicate balance of this local environment as the management process with this construction of NAB. The management has been working with the own experts at Murdoch University along with those from the partners for implementing efficient environmental plans. NAB is a transformative project and would transform the student life of this University through innovative learning along with teaching spaces with the creation of distinct spaces for all students in learning with the peers within the campus along with supporting such activities with all shifting technologies. NAB would be the biggest mass construction of timber within Western Australia with the distinct structure of timber made from renewable resources.

NAB set the leadership benchmarks for sustainability with the huge roof that acts as the generator of renewable energy through the mass array of the photovoltaic cells, with mixed-mode and ventilated spaces for the students for minimizing the usage of energy, its sustainable structure of timber, and positioning this project at the international level of leadership. This NAB would become the new major address of this university and would showcase the sustainability ethos of this university while upholding the campus amenity, landscape heritage, built form, and planning (Halou, et al., 2019). This NAB would be the biggest mass engineered project of timber and would include glulam along with cross-laminated timber would be sourced from sustainable suppliers within Europe and Australia. This project would provide the opportunity for fostering the industry expertise within Western Australia within the projects of mass engineered timber and would show the case to wider property as well as the construction industry. In addition, such innovation could be applied to every future project of construction. This project builds on the latest successful delivery of Multiplex of all other huge-scale mass engineered buildings of timber.

This NAB would be the first of several projects which would position this university over the upcoming 5 years in continuing the growth within education as well as research. This NAB would be the creative warehouse that would incorporate the modern structure of timber enhancing the experience of all students along with providing flexibility for this university in adapting to all changing deliveries of education with time. This building is designed in providing spaces for allowing more innovative usage of teaching approaches as well as technology, such as artificial intelligence and augmented reality (Alkaissy, et al., 2020). It would enable in catering for several learning needs of the students along with delivering a highly engaging and unique experience within the campus. This building would include the facilities of industry collaboration also that would enable all students in interacting with the industry as well as learn new skills for tackling the scenarios of the real world as the student undertake all studies. This project would enable this university in being ready in adapting along with evolve to take full advantage of the future global responsibilities as well as opportunities. This transformation program of this university would enable this university in delivering the vision that would be recognized as a world-changing university.

This existing campus has the linear masonry buildings’ coherent architectural character framing the native landscaped courtyard. Such courtyards are bordered by the long colonnades forming the major circulation network of this campus along with being protected by the roof forms. This design of this new building also responds sensitively and intelligently to the architectural legacy through interpreting such design tenets with the use of a contemporary construction system. This NAB is linear within massing along with characterized by the gable roof that echoes this existing architecture of the campus. This development would improve the education with more innovative learning as well as teaching spaces and facilitate collaboration is supported by the technologies (Adeleke, et al., 2019). The aim of this design of this NAB is to take leadership along with setting the benchmarks for sustainability within a national scale. This project would showcase some local expertise to wider property as well as construction industry; however, would show the current industry students, such kind of innovation could be applied to every future project.

Data from this report has been collected from several different sources. There exist several risks associated with this NAB project and these could be interrelated. After identifying every potential risk to this NAB project, there is a need in sitting down along with assess all risks based upon the probability to become reality as well as the impact those risks could have on this project in case these occur (Mahmoudi, et al., 2020). The risks with high probability and high risk must be handled at first, then risks with low impact and low probability could be tackled. These risks could be identified by holding brainstorming sessions with all stakeholders and the project team. At such point, the aim is identifying every possible scenario that might impact this NAB project negatively. One efficient way for preventing such risks from taking place is by holding regular meetings with all stakeholders and the project team. Additionally, to reviewing the current efforts of risk management, that time could be used also for identifying all other issues which could occur in the future (Chang, et al., 2018). Careful planning is needed to eliminate, reduce, along with accepting all risks. Every risk could be broken down into some actionable items. Also, additional resources could be brought up for managing every risk effectively. There are several phases of this NAB project, such as:

Phase 1:	Project Initiation
Phase 2:	Project Planning
Phase 3:	Project Execution
Phase 4:	Project Performance along with Monitoring
Phase 5:	Project Closure

The risk probability table considered for this risk assessment of this NAB project is as follows:

Descriptor	Definition	Probability
High	Might take place at some time	71%-100%
Medium	Might take place in several circumstances	21%-70%
Low	Would not take place in several circumstances	0%-20%

The risk impact table considered for this risk assessment of this NAB project is as follows:

Impact Severity	Description	Example
High	Performance is at a high risk	Long-term injury, stress, permanent disability, or death
Medium	Performance could be met with efficient replanning	Stress, hospitalization, or severe injury
Low	The risk would be handled with overtime along with other minor adjustments	Minor injuries

Category	Sub-category	Project Phase	Risk Event	Risk Description	Internal or External	Positive or Negative	Likelihood	Impact	Reference
Practical Aspects	Cost overrun	Phase 3 and 4	Operational	Unexpected increase in cost	Internal	Negative	Low	High	Gupta & Thakkar, 2018
Practical Aspects	Design errors	Phase 2	Operational	Unclear overview of designs	Internal	Negative	Medium	High	Jiang, et al., 2020
Practical Aspects	Change orders	Phase 3 and 4	Operational	Modification within the contract	Internal	Negative	Low	Medium	Dandage, et al., 2018
Practical Aspects	Delay in completion	Phase 3 and 4	Operational	Time lag in construction	Internal	Negative	High	Medium	Joseph, et al., 2020
Practical Aspects	Paperwork loss	Phase 2, 3, 4, and 5	Operational	Unrealized capital loss	Internal	Negative	Low	High	Sharma & Gupta, 2019
Practical Aspects	Labor shortages	Phase 3 and 4	Operational	Labor pool is quite low	Internal	Negative	Medium	Medium	Qammaz & AlMaian, 2020
Health	Safety hazards	All phases	Hazards	Causing injuries on site	Internal	Negative	High	High	Themsen & Skærbæk, 2018
Environment	Environmental risks	Phase 3 and 4	Uncertainty	Potential risk to the environment	External	Negative	Medium	High	Zaini & Sofwan, 2020

The practical aspect is the challenging as well as fundamental activity within the execution along with the management of this NAB project. Developing this construction plan is a crucial task within the management of this project. In addition, there is a need to make all organizational decisions among all stakeholders and the project team also.

Sub-categories:

• Cost overrun: It is the unexpected change within the budget of this project ending up in an increase of the overall project cost. This could take place due to several reasons, such as economic factors, psychological causes, or technical reasons (Gavrysh & Melnykova, 2019). There must be a clear view of the progress of this project by the team.
• Design errors: It could negatively affect safety performance, schedule, and cost. It could take place due to several factors, like human mistakes, lack of coordination process, and clear as well as inappropriate view of all designs. A well-managed along with a clearly defined design process needs to be established during the beginning of the project.
• Change orders: It is for the amendment to the construction contract changing the work’s scope of the contractor. It is the work deleted from or added from such original scope of this contract. Based on the change’s magnitude, this might or mightn’t force the project in handling all efficient changes to this project (Zhang & Mohandes, 2020).
• Delay in construction: It is the lag in time for completing the activities from the specified time according to the contract. Delays in the time’s extension while completing the project. Delay is the failure in completing this project in the budgeted cost as well as targeted time as agreed within the contract.
• Paperwork loss: The major issue faced by the project manager while managing all documents’ multitude is the overall volume of data contained within the documents which should be shared between every project stakeholder (Omer, et al., 2021). Such documents result in information redundancy that contributes to a lack of visibility.
• Labor shortages: Due to the shortage of labor for this project, it would take much more time for the structures for completion. It could result in the hiring of some less-skilled workers for meeting the requirements of the project.

Health is crucial for providing practical guidance upon the technical, legal, and administrative framework for health as well as safety of all members within the project team. It means preventing harmful effects upon the health of all workers that could arise during the work (Vladimirova, et al., 2018).

Sub-categories:

• Safety hazards: These could occur due to illness from hazardous substances like chemicals and dust, injuries from the machines, equipment, and tools, injuries from the manual operations of handling, electrocution, or falling from a height. These could also include slips, burns, trips, or falls.

The environmental factor involves virtually all things outside this project, such as the political, economic, and metrological climate, geographical settings, technology, along with nature of the products being used for this NAB project.

Sub-categories:

• Environmental risks: These could include climate change, work environment, patterns of land use, noise, radiation, and pollution. Such risks could be driven by the policies within the sectors out of the health sector, like land planning, transport, industry, and energy. Air pollution is the major environmental issue of the construction project (Chatterjee, et al., 2018). Air pollution could include working with toxic materials, burning, operating diesel engines, and land clearing.

Conclusion

A good risk management plan needs a high collaboration along with communication level with every party involved. The risks could lead to greater rewards if these are managed effectively. Risk identification is used to constantly and analytically identify, assess and categorize the importance of all risks of this NAB project. Risk identification includes risk analysis along with response management for recognizing all potential risks. It would have effects upon the development of this NAB project. failing to identify all potential risks could result in overall inadequacy within the overall process of this project. Risk analysis helps to critically evaluate all risks of this NAB project, arrange them based on their importance, and allow the project team to sleek the crucial ones.

With the use of this plan of risk management, all high risks could be balanced with the low risks involved in this NAB project. It could have crucial effects upon all available resources to this organization. identification of risk helps this organization to identify the most critical and best input data, identify all risks along with their effects, have much better knowledge about the process’ relevance, and provide data to those making crucial decisions. With the use of diverse methods as well as tools, the process of risk identification could be achieved. 

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