Risk Template for Government Private Sector Partnerships (July 2013)
The Risk Assessment Template will offer a standard methodology/matrix risk to enable sponsors of a PPP project to evaluate all substantial risks of a proposed project.
Risk analysis is a key component of the overall feasibility assessment in the business case for a PPP project. Risk assessment is a vital part of determining value for money.
The template will help PPP sponsors complete three critical tasks:
• Building a risk matrix that will be used when considering a potential project’s feasibility.
• Apply a standard methodology to risk evaluation.
• Help create a formal risk management strategy before negotiating with a private partner in order to optimize risk allocation.
The template will be a matrix providing:
• Description of each significant risk
• Probability of each risk
• Economic impact
• Options for risk mitigation
• Risk allocation.