5.57 In appraisals, there is always likely to be some difference between what is expected, and what eventually happens, because of biases unwittingly inherent in the appraisal, and risks and uncertainties that materialise. As a result, risk management strategies should be adopted for the appraisal and implementation of large policies, programmes or projects, but their principles can be applied to smaller proposals.
5.58 Appraisers should calculate an expected value of all risks for each option, and consider how exposed each option is to future uncertainty. Before and during implementation, steps should be taken to prevent and mitigate both risks and uncertainties. It is important to be transparent with sponsors about the potential impact of risks and bias on their proposals.