Project risk is the effect of uncertainty on project objectives. It refers to the risks associated with potential events occurring and the consequences that may impact on project objectives. As such, project risk is often expressed in terms of a combination of the consequences of an event or a change in circumstances, and the associated likelihood of occurrence.
The Victorian Government risk management framework <http://www.dtf.vic.gov.au/Publications/Victoria-Economy-publications/Victorian-risk-management-framework-and-insurance-management-policy> describes the minimum risk management requirements for government entities covered by the Financial Management Act 1994 and adopts the Australian Standard ISO 31000.
Service delivery is central to Partnerships Victoria projects. Government contracts with the private party to deliver contracted services to prescribed standards and the government party pays according to delivery of the services.
Risk is the chance of an event occurring that would cause actual project circumstances to differ from those assumed when forecasting project benefits and costs. Service delivery risk is the foremost concern to contract managers. |