Section 1: Risk

Risk has been defined as the uncertainty of an outcome, whether as a positive opportunity or a negative threat of actions and events that might occur in a project. Risk is also described as the chance of an event occurring which would cause actual project circumstances to differ from those that were assumed when the benefits and costs of a project were forecasted. An important aspect of Privatization planning, therefore, is clearly allocating risks and implementing approaches to mitigate those risks.