12.7 Exercise For each risk and response below, indicate if it is a threat or opportunity and note the type of response being proposed.

Type of response Risk Threat or Opportunity Response

(mitigate, avoid, enhance, etc.) Probability 1. New mayor or city council members decide to cut spending Build strong community support to decrease likelihood.

Medium 2. A wealthy benefactor donates to have their name on the library and the city council agrees.

Meet with potential benefactors.

Low 3. Construction is delayed by weather and material shortages.

Plan inside work for rainy days; set aside reserves for expediating materials if necessary.

Medium 4. A coffee shop could bring in more revenue than expected

(possibly from people who are not even using the library).

Partner with a coffee shop franchise to run the shop.

High 5. A community member forms a group to protest the library building costs.

Build strong community support.

Low 6. A construction worker is injured on the job site and requires medical care.

Make sure all contractor workers are covered by an accident insurance policy with medical coverage.

Low