Managing Risks - Department of Public Works and Services

Some General Principles (cont’d)
Risk must be acceptable to lenders or
financing may not be available
Risk analyses/assessments by lenders will
likely differ substantially from that of
government party/private sector party
Parties may apply probabilistic approach to risks
(especially for cumulative risks)
Lenders may not use same probabilistic approach
and/or may look to “worst case scenarios”
Best strategy for financeability may not be
best strategy for design and construction!
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