2.53 One of the key objectives of the FBC is that it enables the procuring entity to demonstrate its compliance with SGHD approval criteria. Given the significance of risk within PPP, it is vitally important that the NHS body fully demonstrates the risk analysis it has undertaken. Within the FBC, therefore, the following analysis should be provided:
• a summary risk allocation matrix;
• the methodology used to quantify risks;
• a high level description of each key risk (example of risk description table at Appendix 3);
• a statement of whether the risk is quantifiable;
• a commentary detailing how the risk may impact and the assumptions used to quantify it;
• the net present costs of the risk (under best, worst and most likely scenarios);
• the results of the assessment of non-quantifiable risks;
• a statement of how risks transferred are reflected in the project agreement;
• a statement of how risks retained will be managed.