Developing Bankable Climate Finance Proposals

Lecture 06

Allocating risk correctly

PublishedReading lectureWritten by Nuwan de Silva

Content

In the order a learner meets it. Each block is a separate thing to write, and their order is the lecture's argument.

  1. Block 1 · text

    Risk goes to whoever can control it

    Bankability is largely a question of whether risks sit with the party able to manage them. Demand risk placed on a contractor who cannot influence demand is priced heavily, or refused outright; the same risk retained by the implementing authority may cost far less across the life of the project.

  2. Block 2 · text

    Some risks belong with government, deliberately

    Land acquisition delay, permitting risk and policy risk are usually cheaper for the public sector to hold than to transfer, because the public sector is the party that can actually resolve them. Transferring them anyway is not caution, it is an expensive way to look prudent.

Attached materials

What the learner downloads. Everything here comes off the shared library, so one file can serve six lectures and be replaced once.

  • Risk allocation matrix - template

    Spreadsheet · 118 KB · uploaded straight onto this lecture

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Lecture quiz

4 questions close this lecture. The pass mark is 70% and is set once for the whole platform. It also carries 2 written questions - a learner has to clear both to move on.

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