2.9 The objective of risk assessment at this stage is to acquaint the NHS body with the breadth of risks affecting both the current healthcare strategy and any potential scheme.
2.10 At this stage of the procurement process, the project team should identify the strategic risks facing their organisation, e.g. the risks affecting the overall pattern of demand or supply for heath care in the locality. The team should then assess how these risks are likely to affect the key assumptions underlying the organisation's developing healthcare strategy.
2.11 The NHS body should seek to demonstrate that they are aware of the potential risks affecting or associated with the proposed investment. They should identify the significant risks which they consider are associated with the investment and which could affect its cost, timing and deliverability. Importantly, NHS bodies should make explicit allowance for these risks when outlining affordability, deliverability and when considering VFM of the investment route. Failure to factor in an allowance for the cost of risks will result in an understatement of the true cost and affordability implications. This could cause problems at a later stage in the procurement process. Issues of affordability should be identified as early as possible within the development of schemes.
2.12 As a general rule, the type of risk considered at this stage is strategic or high level, and project managers should not seek to undertake detailed analysis. It is good practice, however, for NHS bodies to clarify the key risks associated with the proposed investment and establish both a preliminary Risk Register and Risk Management Strategy. The Risk Register is a working document that should be kept updated throughout the life of the project, and refined into a Risk Allocation Matrix prior to procurement. The Risk Management Strategy should outline how internal and retained risks will be managed and by whom within the NHS body throughout the process.