Retained

Allocation	Category Codes	Risk	Timing	Description	Consequence	Rationale/Mitigation	Risk Expert	Probability		Consequence			@ Risk Distribution		@ Risk Discrete Distrib'n
								Yes	No	Best	Most likely	Worst	Yes	No
Retained	S1	Risk of lengthy approval time	C	Risk that the approval process is longer than anticipated.	Delay in works commencenent or completion and cost increases.	The State can ensure that approval time is conservative in planning Project timelines	[insert name of risk expert/ source of risk estimate for each risk]	22%	78%	800	1000	1200	1000.0	0	0
	S5	Native title risk	C	Risk of native title claims on the Site.	Delay in progess of construction and /or compensation to be paid to the claimants.	Undertake a search and inquiry		1%	99%	200	300	500	339.7	0	0
	S8	Site access	C	Risk that some of, or the entire site is not accessible as expected by the private party.	Delay in works commencement or completion and cost increases.	The State has purchased the preferred Site. Site access to be determined prior to tender.		15%	85%	100	150	400	229.9	0	0
	S13	Site availability	C	Risk that the designated site is unavailable.	Delay in works commencenent or completion and cost increases.	The State purchased the preferred site for the Hospital in early 2001.		7%	93%	750	800	1000	859.8	0	0
	SC1	Change in Hospital Operator requirements between now and Commissioning	C	Risk of changes to the service outputs required from the private party as specified by Hospital Operator	Delay in works commencement or completion and cost increases.	The State will absorb changes to the specifications in order for the private party to comply with the revised specifications.		22%	78%	200	250	350	269.8	0	0
	SC2	Change in Hospital Operator requirements between now and Commissioning	O	Risk of changes to the service outputs required from the private party as specified by Hospital Operator	Delay in works commencement or completion and cost increases.	The State will absorb changes to the specifications in order for the private party to comply with the revised specifications.		22%	78%	30	50	85	55.9	0	0
	SC3	Inadequate briefing of service specifications	C	Risk that service specifications are inadequately briefed	Facility may need to be redesigned or modified leading to increase in costs.	The State is to ensure that a communication strategy is developed for all stakeholders in the Project. The Service Profile is to be agreed with DHS and the Facility is specified to meet at least the generic brief which has been demonstrated as adequate for service delivery based on Hospital Operator experience.		44%	56%	500	600	800	639.7	0	0
	SC4	Inadequate briefing of service specifications	O	Facility may be inefficient leading to increase in recurrent costs.	Facility may need to be redesigned or modified leading to increase in costs.	The State is to ensure that a communication strategy is developed for all stakeholders in the Project.The Service Profile is to be agreed with DHS and the Facility is to be specified to meet at least the generic brief which has been demonstrated as adequate for service delivery based on Hospital Operator experience.		15%	85%	100	150	300	189.8	0	0
	SC5	Equipment specification	C	Risk that the specifications for equipment are inadequate.	Increase in costs and delay in operations.	The State will reimburse the reasonable costs incurred for any State initiated variations to the service specifications.		22%	78%	500	550	700	589.8	0	0
	SC6	Equipment specification	O1	Risk that the specifications for equipment are inadequate.	Increase in costs and delay in operations.	The State will reimburse the reasonable costs incurred for any State initiated variations to the service specifications.		22%	78%	200	350	500	350.0	0	0
	SC7	Clinical equipment specification	C	Risk that the specifications for clinical equipment are inadequate.	Increase in costs and delay in operations.	The State will reimburse the reasonable costs incurred for any State initiated variations to the service specifications. Use of backup equipment from other Hospital Operator hospitals.		22%	78%	2000	2500	4000	2897.7	0	0
	SC8	Clinical equipment specification	O	Risk that the specifications for clinical equipment are inadequate.	Increase in costs and delay in operations.	The State will reimburse the reasonable costs incurred for any State initiated variations to the service specifications. Use of backup equipment from other Hospital Operator hospitals.		22%	78%	1000	1200	1800	1359.1	0	0
	SC9	Local council requirements -Car parking	C	Risk that local council will require a significant increase in the car parking requirements.	Delay in works commencement or completion and cost increases.	Obtain council opinion on the car parking requirements as part of the approvals process.		15%	85%	50	75	200	114.9	0	0
	SC10	State Initiated Variations	C	Risk that the State changes the design, construction or commissioning requirements or service specifications.	Delay in works commencement or completion and cost increases.	The State will reimburse the reasonable costs incurred by the private party for any State initiated variations.		44%	56%	450	550	900	649.5	0	0
	SC11	State Initiated Variations	O	Risk that the State changes the design, construction or commissioning requirements or service specifications.	Delay in works commencement or completion and cost increases.	The State will reimburse the reasonable costs incurred by the operator for any State initiated variations.		44%	56%	300	350	550	409.8	0	0
	D3	Inadequate and inefficient circulation routes	C	Risk that the extent of circulation within functional units and travel between functional units do not support the operational requirements of the Hospital.	Increase in cost	Design of the building to be conducted by appropriately qualified experts and clinical functionality is to be approved by Hospital Operator.		15%	85%	100	120	400	224.8	0	0
	D4	Inadequate and inefficient circulation routes	O	Risk that the extent of circulation within functional units and travel between functional units do not support the operational requirements of the Hospital.	Increase in staff time to carry out their duties	Design of the building to be conducted by appropriately qualified experts and clinical functionality is to be approved by Hospital Operator.		15%	85%	50	65	90	69.0	0	0
	C3	Clinical equipment price changes	C	Risk that the price of clinical equipment will change from now to the end of construction phase.	Increase in costs			44%	56%	3000	3500	5000	3897.7	0	0
	O1	Design inefficiencies	O	Risk that the design of the Hospital is not efficient for staff to carry out their duties. This risk does not include inadequate and inefficient circulation routes.	Increase in staff time to carry out their duties and reduction in quality of patient care by Hospital Operator.	Hospital Operator to endorse clinical functionality of design prior to construction		22%	78%	100	250	400	250.0	0	0
	O2	Inability to attract sufficient clinical staff	O1	Risk that Hospital Operator is unable to employ the quality and number of staff required for the Hospital	Quality of Hospital Operator service to patients may suffer.	Allow sufficient lead time for recruitment, provision of incentives		22%	78%	200	500	1000	579.3	0	0
	L3	Change in Law risk	O	A change in Law which is limited in its application to any of the following: the Project, provision of publicly funded health care premises in Victoria, or other States within Australia including Victoria, or provision of health care accommodation services by the private sector to the public sector for operation as a publicly funded hospital in Victoria or other States within Australia including Victoria.	Adverse cost consequences in order to comply with the change.	This will be a retained risk		29%	71%	600	900	1500	1019.0	0	0
	SC17	Area requirement specification		Risk that the specifications of the area requirements are inadequate.	Facility may need to be redesigned or modified leading to increase in costs.	The State will reimburse the reasonable costs incurred by the private party for any State initiated variations to the service specifications.
	D18	Future expansion design		Risk that the design of the building does not take into account the appropriate expansion of the Facility	Restriction in expansion options.	Discuss expansion requirements with Hospital Operator to ensure design reflects expected expansion requirements.
	SF6	Risk of third party negligence.		The risk that third party negligence leads to a claim made against the State.	Potential litigation and increase in insurance premiums	The State will ensure that it will obtain third party insurance.
	O3	GPs close their out of hours services		Risk that local GPs will close their out of hours services, hence unanticipated increase in patient demand on the hospital	Increase in costs	The State will conduct a detailed service specification incorporating future changes to GP out of hours services to ensure that unanticipated additional services/ facilities are kept to a minimum.
	O4	Unexpected change in patient demand		Risk that expected demand for clinical services is different from that specified in the scope of the Project.	Delay and cost increases	The State will conduct a detailed service specification incorporating future projected changes in population where possible to ensure that unanticipated additional services/ facilities are kept to a minimum.
	O5	Unexpected change in patient demand		Risk that expected demand for clinical services is different from that specified in the scope of the Project and therefore impacts on private sector services required.	Adverse cost consequences in order to comply with the change.	The State will conduct a detailed service specification incorporating future projected changes in population where possible to ensure that unanticipated additional services/ facilities are kept to a minimum.
	O6	Emergency demand		Risk that Emergency demand is greater than expected.	Adverse cost consequences in order to comply with the change.	The State will undertake the appropriate research and using current projections make an informed estimate.
	O7	ICU becomes mandatory for operating Emergency Department		Risk that standards change and intensive care units (ICU) become mandatory for operating an Emergency Department.	Adverse cost consequences in order to comply with the change.	The State will conduct a detailed service specification incorporating future projected changes in law where possible to ensure that unanticipated additional services/ facilities are kept to a minimum.
	E5	Price risk - water		Risk that water prices will change above expectations.	Increase in water costs	Hospital Operator will be responsible for price risk on water.
	E8	Volume/ usage risk - water only		Risk that the volume of water used is greater than anticipated.	Increase in water usage costs	Hospital Operator will be responsible for volume risk on water.
	L10	Changes to building standards for hospitals		Risk that that changes in building standards impact the design and construction of the Hospital.	Delay in works commencement or completion and cost increases.
	L11	Changes to health care operating standards		Risk that changes in health care operating standards will impact on the way service is delivered by Hospital Operator.	Adverse cost consequences in order to comply with the change.	This risk will be borne by Hospital Operator
	L12	Changes to health care operating standards		Risk that changes in health care operating standards will impact on the way service is delivered by Hospital Operator.	Adverse cost consequences in order to comply with the change.	This risk will be borne by Hospital Operator