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

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