The private sector will encounter risks from maintenance life cycle costs, especially if the PPP has a build, operate, and maintain design. They will also be responsible for the operations of the facility and production as well as the performance of the company and their employees. The other risk they are responsible for is continual innovation in order to remain efficient and a player within their industry, since their underlying goal is to maximize their profit or remain a top competitor. In this same regard, technology used by the private sector must remain current and on the cutting edge to be on the same playing field as others within their industry. These risks are referred to as transfer risks to the public sector and will increase the value of the private sector bid. Risks are identified and calculated as previously described. Note that when transferring the risk to the private sector, assessments of risk require "an optimal rather than maximum transfer of risk. [This] is determined by assessing the ability of each party to reduce the probability of a risk occurring, and to [minimize] the consequences if that risk eventuates."39
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39 Partnerships Victoria (2001), 52.