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7. Project risk analysis

Project risk management

The purpose of this section is three fold:

  1. to alert decision makers to any risks in the project that might be material to the decision making at this point, or need to be resolved prior to a later decision
  2. confirm to decision makers that a thorough process has evaluated all risks relevant to the stage of the project
  3. to ensure that a program of work is in place to address the major risks identified.

This section should concentrate on the most significant risks - a full risk analysis if completed should be appended.

In the table below, the estimate of risk column is optional. It can be used to identify the costs of risks that are not adequately covered by the cost plan and to emphasise areas for further attention. Risks should be given ranges. Examples might include latent conditions in a building or ground, reliance on a major funding contribution from a non-government source or reliance on a related project program and funding.

A risk management plan will be developed within the preliminary business case. The major project risks identified to date include:

Service planning

{Detail risks.}

Cost risks

RiskRisk possibilityEstimate of risk ($m)Comment
Briefed areas are low Rate as low, moderate or high    
Building cost estimates are low      
Land costs are underestimated      
Project delay      
Increase in scope      
Costs are not included      
Recurrent cost risks      

Section should include a generic statement covering Department of Health, Infrastructure Planning and Delivery (IPD) branch, cost management approach. Refer to IPD for details.

Land acquisition

{Detail risks.}

Model of care

{Detail risks.}

Recurrent funding

{Detail risks.}

Budget approval

{Detail risks, especially related to not proceeding, or deferral or delay of funding.}

Implementation risk

{Detail risks.}

Project profile model

The project profile model indicates that this project has a weighted risk score of { } and is therefore a { } risk (Level { } project.