Each partner has an enormous obligation in the management of risks in any PPP arrangement. The partner must ensure that concerted efforts are exerted that risks are specifically specified in their natures and where they fall. The partners thus have to comprehensively get to the knowledge of the nature and kind of the risk and where they hit most. Literature review is used to identify all forms of risks in a PPP arrangement, and their effects, and their probable solutions. These are then explored through deeper systematic reviews of case studies of implemented PPP projects and those on-going ones implemented and being implemented in various countries. Risk issues in PPP relate to typology, perspectives of parties and criteria. The findings show that effective identification and comprehension of risk in PPP will increase the likelihood that intended purpose is achieved in PPP especially when the boundaries for risk taking is well established.
If you do not actively attack the risks, they will actively attack you. - Tom Gib
TopRisk Classification In A Partnership
The term risk encompasses a heterogeneous group of unusual occurrences, ranging from a single event producing devastating effect at a single point to sophisticated events in complex projects, for example, PPP that requires specialized treatment. What is, or is not, a risk is usually defined by the number of those who handle it and definitions vary between actors and implementers. Jin and Doloi (2007) warn that risk is one of the biggest and most fascinating challenges of all times for humanity, because of its presence in all fields. Within the general complex PPP projects a number of risks can be identified: with no particular exception to any stage. In most instances, little efforts have been made to know and understand these risks such that in the end their devastating effects cannot be gauged. Failure to recognize the prevalence of risk in a partnership, caution Yongjian, ShouQing and Chan (2009) can lead to a distorted classification and inability to file proper solution(s). This section aids in that direction by discussing the typology of risk, risk factors as risk categories in a partnership.