This part of our report examines the key risks to the Department's business of this large and complex Information Technology project and how well these were managed. It shows that the purchasers felt that they had transferred the risk of late delivery to Pathway through the Private Finance contract. This indeed ensured that Pathway, and not the public sector, eventually bore the £180 million abortive costs of the system's development. But the Department retained substantial business risk associated with continuing benefit fraud and with constructive losses on their linking CAPS project.