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Risks & Mitigation

Following are the perceived risks involved in developing a diagnostic centre 1. Construction / implementation risk arising from a. Delay in project clearance b. Construction cost overrun 2. Market risk arising from a. Insufficient demand 3. Finance risk arising from a. Inflation b. Change in interest rates c. Increase in taxes 4. Operation and maintenance risks arising from a. Termination of contract b. Technology risk c. Manpower risk 5. Legal risks arising from a. Changes in law

Risk

Mitigation Strategy

Construction/Renovation cost/time overrun

Building to be provided to the partner wherever available


3. Land/Building shall be handed over within 30 days of signing of the contract, in as is where condition is.

Inflation risk

The government shall revise the reimbursement rate for diagnostic service as and when the inflation rate is revised.

Change of interest rates/tax rates

Partners have to bear any changes in interest rates and tax rates by the state/central government. Partners have to bear the exchange rate fluctuation during the procurement process. The service has to maintain power stabilizing equipments and power backup generator as required

Exchange rate fluctuation

Utilities

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