Retained risk refers to applying an understanding and fiduciary figure to the risks that remain with the government when engaging in a PPP. These risks will differ with each partnership and can even differ between the bids that are received in exploring the use of PPPs in the delivery of services or in a project. Interesting, the public sector can request a preferred threshold of risk that would be retained and transferred to the private sector partner. The most important aspect is that this value of retained risk be calculated and added to the private sector bids that have been received. This can only be done by identifying all project risks, developing and understanding the consequences of each risk, establishing the probability of each risk, and finally, calculating the appropriate value of the risks.55
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55 Partnerships Victoria (2001), 56-58.