Risk Management in New Hospital Project †MyAssignmenthelp.com

Question: Discuss about the Risk Management in New Hospital Project. Answer: Issue recognized: Risk Management: Risk managementis one of the most important issues new and ongoing projects like the New Royal Adelaide Hospital face. This is due to several factors like the financial aspects, supply chain management, involvement of multiple stakeholders and legal complexities. The project New Royal Adelaide Hospital is facing the issues of risk management in a big way due to several reasons (abc.net.au 2018). The project, touted as one of the worlds most expensive projects involves both the government and private contractors. The project also includes suppliers, financing organizations and customers among the other significant group of stakeholders. The first risk factor the project was facing was ambiguous terms on which the contract between the contractors and the government stood. The important clauses like the tenure of the project and proper documents to be maintained by the parties involved was not clearly agreed upon. This led to poor management of the project ultimately culminated to the second risk factor, financial risks. The second riskmanagement issue which the New Royal Adelaide Hospital faced was financial risk. The parties in absence of clear contract did not maintain documents pertaining to the project and as a result had minimum control on its progress. This led to extension of the project tenure and costs. The contract did not mention the particulars of the equipment to be procured for the hospital. This led to inappropriate supplier management and their guarantees, all of which added to wastage of financial resources. These factors ultimately left scope for inappropriate treatment to the customers which would further pave way for business risks and legal risks when the affected customers would file legal cases (Fleming and Koppelman 2016). Misidentification of customers would create risk management issues once the hospital starts providing medical services to them. Inappropriate customers identification and faulty supply chain management would result in faulty treatments which would harm the customers. The issue in the long run would lead loss of customers and market goodwill, exposing the project to heavy competitive risks (Joseph. Phillips and PMP 2018). References: ABC News. 2018.Australia's most expensive building: What you need to know. [online] Available at: https://www.abc.net.au/news/2017-01-24/new-royal-adelaide-hospital-all-you-need-to-know/8206416 [Accessed 17 Apr. 2018]. Joseph. Phillips, P.M.P., CBAP, I. and PMP, C., 2018.PMP Project Management Professional Study Guide. McGraw-Hill Education. Fleming, Q.W. and Koppelman, J.M., 2016, December. Earned value project management. Project Management Institute.