Irrespective of whether the particular risk is to be borne by the private party or government, it is in the interests of both parties to ensure that the risk does not eventuate. For example, although design and construction risk is essentially borne by the private party, materialised risk events have the potential to impact on government in the form of delays or interruptions to service, less efficient service or, in an extreme case, catastrophic failure. Therefore, there is a strong incentive for each of the parties to actively manage risks throughout the project. Having said this, government needs to be careful not to become overly involved in the management of risks, such that it ends up assuming risks that it thought it had allocated to the private party.