There are a large number of risks associated with delivering the types of projects assigned to IO. These risks can be grouped into three broad categories:
1. Retained risks: risks that are retained exclusively by the public sector;
2. Transferred risks: risks that are entirely transferred to the building consortia; and
3. Shared risks: risks that are shared (and retained) to varying degrees between the public sector and the building consortia.
For every project, risks are assessed, categorized, and estimated through a risk workshop. Participants in the risk workshops may include Infrastructure Ontario staff, public sector project sponsors, and external experts (including VFM advisors, various construction and facilities maintenance cost consultants and financial advisors). The risk matrix is a comprehensive chart used by the participants to identify risks and quantify their impact on the public sector under the different delivery models.
| The development of a risk matrix consists of the following steps: | |
| STEP #1: | |
| STEP #2: | |
| STEP #3: | Estimate probability of risk occurrence and resulting cost impact ranges |
| STEP #4: | Run statistical analysis to quantify total risks retained by the public sector |