5.4  Risk Allocation and Transfer

It is important that the organisation takes a realistic view of the risk it can transfer. The principle should be that the risk stays with the party best able to manage it.  If a partner thinks they are unable to manage, or identify fully, a transferred risk this will be reflected in the price and affect value for money.

In the increasingly common world of multi-supplier partnerships each partner will want to be assured of where the risks boundaries are set and what the organisation is committing to otherwise their proposal may not pass their internal governance procedure and they will "no bid".

Has an initial assessment / matrix of risk allocation and transfer been prepared?

There should be no shared risks. (Does ownership of a risk need to be negotiated?)