Risk treatment involves identifying the range of options for treating risks, assessing these options and preparing and implementing treatment plans. For project alliancing, the treatment options may be classed as either sell or retain the risk.
The sell option is to buy insurance to cover the risk. This can be achieved if either the Owner, the Non-Owner Participant, or the alliance sells the risk in the insurance markets. The process for considering the insured risks is described in Appendix B of this guidance note.
The retain option is to manage the risk. For project alliancing, this requires:
• risk management policy and planning;
• project design and possibly redesign;
• establishing accountability and authority;
• customising the risk management processes; and
• ensuring there are adequate resources.