To the extent that government controls and manages the network from which the network risk may materialise, on optimal risk allocation principles, it would seem appropriate for government to bear this element of the risk.
However, this approach fails to take account of government's competing responsibilities to manage public networks in the overall interests of its citizens and according to a range of statutory requirements that may not always be consistent with the needs of the private party.
In reality, all businesses suffer the risk that systems on which they rely will change to their disadvantage. As such, there is no reason in principle why the private party should not bear this risk as one ordinarily inherent in the business environment. This is particularly so if government itself is the service receiver, because the risk that government will act in a way that prejudices the quality or provision of the contracted services would be minimal in that instance.
In allocating network risk the desirability of having the private party deliver the contracted services successfully should be balanced against each of these factors.