Project Risk Allocation Principles - 2
- If the risk is such that it cannot be controlled, which party can or should carry the risk?
- Will the cost incurred or premium charged by the recipient of the risk be reasonable and cost-effective?
- If the risk occurs, can the recipient sustain its consequences?
- Or will it simply lead to the possibility of other risks of a different nature being transferred back
- E.g. slow down or collapse of the project effort through demoralization
- Or bankruptcy