Identify and explain any three risks to which EHT gets exposed by importing first of its kind medical equipment for carrying out eye surgeries. (4…

Following risks can be considered: (i) Operational Risk – As equipment is first of its kind, training issues, non-availability of personnel to handle the equipment. (ii) Currency Risk – Equipment is imported, so currency risk exists. (iii) Compliance Risk – Compliance with Forex guidelines. Alternative Importing a first-of-its-kind medical equipment exposes EarthCare Health Trust (EHT) to several technological, operational, regulatory and capability-related risks that may affect its healthcare delivery model and overall Value for Money (VFM) performance. Since this is the first such machine in India, the decision cannot be based solely on cost or efficiency; it must also incorporate non-financial considerations such as equipment reliability, service quality, patient safety, ethical responsibilities, organisational capacity, regulatory compliance, and long-term sustainability. These factors are critical because any shortcomings in technical support, staff readiness or regulatory approvals can directly disrupt eye-care services and diminish the expected benefits of the imported technology. The first major risk relates to technological uncertainty and dependence on specialised support. Since the equipment is new to India and potentially unfamiliar to local technicians, EHT may face challenges in obtaining timely maintenance, calibration and technical troubleshooting. Any delay in repair or lack of local service capability can result in prolonged equipment downtime. This directly affects the continuity of eye surgeries, reduces patient throughput and undermines the Trust's operational efficiency. Moreover, the absence of comparable domestic expertise may force EHT to rely on costly overseas support, increasing operating costs and creating long-term financial commitments beyond the initial purchase price. This weakens Economy due to higher maintenance expenditure, decreases Efficiency because downtime limits equipment utilisation, and reduces Effectiveness as fewer surgeries get completed and patients experience delays in receiving care. A second significant risk arises from skill and capability gaps within the organisation. Doctors, nurses and technicians at EHT may not have prior experience handling such advanced equipment, increasing the likelihood of improper use, performance errors or even safety incidents. Without structured training, certification and supervised usage protocols, the equipment may not be utilised to its full capacity, resulting in under-performance or suboptimal surgical outcomes. This not only affects the effectiveness of eye-care services but also exposes the Trust to reputational risk if patient outcomes deteriorate. The absence of readily available training partners in India further delays capability building, which may reduce the Return on Investment from the equipment during the initial years. A third important risk relates to regulatory, compliance and supply chain constraints that arise when importing highly specialised medical technology. Being the first of its kind in the country, the equipment may require additional approvals, import clearances, adherence to medical device rules, and periodic compliance filings. Any deviation or delay in obtaining these approvals can expose EHT to legal consequences, penalties or operational restrictions. Furthermore, importing such equipment creates long-term dependence on foreign suppliers for consumables, spare parts and software updates. Any disruption in global supply chains due to geopolitical tensions, currency fluctuations or import policy changes, can interrupt access to critical components, affecting the availability and reliability of surgical services. These supply-related uncertainties increase both financial risk and service disruption risk. This adversely affects Economy because imported consumables and compliance costs are higher, weakens Efficiency as delays lead to idle equipment capacity and postponed surgeries, and compromises Effectiveness since service disruptions reduce the number of successful procedures and overall healthcare outcomes. Overall, while the import of the new equipment enhances the Trust's capability to conduct advanced eye surgeries, it simultaneously exposes EHT to technological, operational and regulatory risks that require proactive mitigation. Establishing service contracts with the supplier, investing in comprehensive staff training, and securing compliance clearances and backup supply arrangements are essential steps to ensure that the equipment adds sustainable value to EHT's healthcare mission.