Project Risk Management (Essay Sample)

Project Risk Management
Name
Institution
Project Risk Management
Introduction
A risk is a condition in which there exist possibilities of negative deviation from the wanted or projected result. It is always manifested if it occasions an adverse change to the desired result. Smart Hospital is a proposed project aimed at revitalizing the Health Care industry in United Arab Emirates by embracing the very latest high standards of technology and efficient service delivery. Being a Pilot project as it is, and a totally novel concept in its entirety, the initiative is likely to face a number of upheavals in terms of risks. Therefore, in order to curb ramifications of such risks, it is imperative to employ Risk management strategies which will guarantee that achievement of the primary objective of the project is not hampered. Risk management is a process which is pursued in phases (Emmett, 1996). In this paper, I will first set out a good plan on risk management; identify the respective risks and finally conduct a qualitative analysis of the probable magnanimity of such risks.
Risk Management Plan
The inception of Risk Management starts with a detailed and comprehensive structural plan indicating how potential risks can be detected; the persons responsible for detecting the risks and mitigating any ramifications; and the possible chain of operations which should take effect in the unfortunate event that that risk actually rocks the institution (Bartlett, 2004). For this project, we envisage a structure that will require each department within the project’s fabric to have a risk compliance official who has undergone special training on risk management.
The higher tier level of risk management will have the Senior Risk Compliance Coordinator who is tasked with overseeing all risk management mechanisms in the hospital and investigating potential causes of risk. If a risk occurs within a department, the compliance officer first updates the coordinator before starting any mitigation processes. The compliance officer also will have a duty of periodically updating the coordinator about the status of risk management in their department and the potential risks as speculated. The Senior Risk Compliance Coordinator will also develop regulations to be followed by all persons within the institution in a bid to ameliorate the risk.
Risk Identification
Smart Hospital is susceptible to a number of risks which if they occur, will greatly jeopardize its smooth establishment. The first one is that the project is open to legal impediments especially suits emanating from groups such as persons with disability who are likely to challenge the card admission procedure as suggested in the project. They may argue that since there will be no one at the reception desk, they will not get help during admission.
The second risk is vested in the Finance department. Such a mega project involving technology set up is likely to have flaws especially during procurement and accounting for resources. Therefore we may end up using more than projected or even not finishing the project owing to lack of funds.
Another major risk is that the project might take longer than expected because of inordinate delays which may be inevitable. This might be actuated by either court cases or frustration of the project by government policies; or even inability to obtain the requisite licenses on time. All these risks will ultimately be prejudicial to the overall timelines set initially in the project plan.
Qualitative Risk Analysis
From the estimation of our project risk management team here is a clear qualitative analysis of the above identified risk. It is highly probable...