Primary Care Infrastructure Grants Guidelines 2011

Annexure 2

Page last updated: 2011

Risk Management Plan

See table below of Examples of risk, likelihood, impact and mitigation strategies for the PCIG project.

Provide the following details for each identified risk:
  • Risk reference - sequentially numbered from 1
  • Risk - what can happen? Determine which risks are the most important in terms of their potential to impact on the achievement of the objectives of the project. Where possible, try to combine similar risks to consolidate the number of potential risks.
  • Source - how can this happen? Identify the source of each risk (i.e. how the risk can occur or what would prevent you from achieving the outcome).
  • Impact from event happening. Identify the consequences of each risk (i.e. what does it mean to your organisation if it does happen).
  • Treatment strategies. A treatment is a planned approach, process, policy, device, practice or other action that acts to minimise negative risks or enhance positive opportunities. What are the controls currently in place that affect the impact and/or likelihood of the risk? Controls may include checklists, regular planning meetings, procedures manual, contingency plans, audits or agreements in place.
  • Effectiveness of current treatments. An adequate control implies that the risk is well managed and no further treatments are required. A marginally effective control implies that a treatment is not necessary; however this may depend on the level of risk. An inadequate control implies that treatments are necessary.
  • Likelihood. Rate the likelihood of the identified risk occurring with the controls in place. Ratings are: almost certain; likely; possible; unlikely; rare.
  • Consequence. Rate the consequence to the project outcomes of the identified risk occurring with the controls in place. Ratings are: insignificant; minor; moderate; major; catastrophic.
  • Current risk rating. See risk rating table (below) for details.
  • Acceptable/ unacceptable? Top of page

Examples of risk, likelihood, impact and mitigation strategies for the PCIG project

RiskLikelihood
Low / Med / High
(comments)
Impact
Low/Med/High
Mitigation Strategies
Council rejects applicationeg. Low.
All works satisfy building codes, etc.
High/Med/LowEnsure all works will satisfy necessary codes, etc.
Delays in Council approvalsMay depend on how extensive project is, complexity, zoning etc.High/Med/LowPrior contact with Council to seek guidance, directions, in-principle support.
Budget shortfallsProject has been appropriately scoped to cover all known contingencies/ Project will be fully funded by Grant.High/Med/LowDevelop budgets to fully plan for known likelihoods and factor in relevant contingencies. Take a competitive approach to the market.
FinancialWhere additional finances are required above Grant funds.High/Med/LowEnsure necessary assurances are in place from lending sources prior to commencement of project.
Construction delaysMay depend on scope of project; availability of trades; weather; price escalations.High/Med/LowEnsure project manager/coordinator is fully capable and has submitted appropriate documentation required by the Funding Agreement.
Disruption to servicesSome services may or will be impacted during the works.High/Med/LowAs much of the works as possible will be carried out in the after hours period.
Back-up plans in place?
TenureNo issue? - practice owns the building. Lease agreements are in place?High/Med/LowEnsure all lease agreements are in place and owner consent is assured in writing.
Occupational Health and SafetyNeed to become familiar with all necessary requirements.High/Med/LowAppoint a person to have Occupational Health and Safety responsibility for the project.
Unanticipated additional worksSite preparation difficulties encountered only after the project has commenced. Rock, sewerage, easements, etcHigh/Med/Low Provide for as a contingency. Inform Department if substantial issues re costs/delays.
Top of page

Risk rating table

This table uses the following codes for the risk rating:
  • L - low
  • M - moderate
  • H - high
  • E - extreme
    LikelihoodInsignificant consequenceMinor consequenceModerate consequenceMajor consequenceCatastrophic consequence
    Almost certainLMHEE
    LikelyLMHHE
    PossibleLMMHE
    UnlikelyLLMMH
    RareLLMMM