11.2.5  Risk valuation (example)

In consultation with the Procuring Agency, risk has been valued for inclusion in the PSC. The terms of reference for this work are to:

•  facilitate the identification and quantification of project risks in accordance with the Public Sector Comparator Guidance, including the coordination and facilitation of all risk workshops and/or structured risk interviews required;

•  conduct either the advanced, or the simple valuation technique on the identified risks in accordance with the Public Sector Comparator Guidance, i.e. the choice of technique is to be determined in consultation with advisers, the Procuring Agency and government;

•  carry out quantitative analysis of the risks using financial modelling techniques as appropriate and incorporate the results into the overall PSC financial model; and

•  document the risk identification and quantification process in accordance with the Public Sector Comparator Guidance.