06. Allocating risk correctly

Lecture quiz

Quiz - Allocating risk correctly

Developing Bankable Climate Finance Proposals. Unlimited attempts, no timer, and one pass mark for the whole platform - applied the same way to the 2 written questions below the multiple choice.

4 questionsPass mark 70%No results recorded+ 2 written questions

Questions

4

70% to pass

Attempts

-

no figures in this prototype

Pass rate

-

no figures yet

Average score

-

no figures yet

Questions

The correct answer and its explanation are shown together here so you can check them at a glance - neither is ever shown to a learner attempting the quiz, right or wrong.

  1. 1. What makes a project 'bankable' rather than simply worthwhile?

    • It has government backing
    • It produces a measurable return or saving a funder can point toCorrect
    • It is technically innovative
    • It has no environmental impact

    A project can be entirely worth doing and still not be bankable if nothing about it produces a measurable return a funder can point to.

  2. 2. A revenue-generating project pitched only for grant funding is making what mistake?

    • Asking for too much money
    • Wasting the strongest thing the project hasCorrect
    • Underestimating construction costs
    • Ignoring the climate rationale

    Matching the finance type to a project's actual cash flow is decided before the proposal is drafted - a revenue-generating project belongs with a different source.

  3. 3. What does a strong climate rationale have to do?

    • Cite as many co-benefits as possible
    • Connect the intervention to a climate outcome by steps someone can checkCorrect
    • Avoid mentioning cost
    • Focus only on emissions reduced

    A rationale that asserts a benefit without a checkable chain of steps does not survive review; each link has to be something a reader can follow and dispute.

  4. 4. In project finance terms, where should risk generally sit?

    • With the party that has the deepest balance sheet
    • With the party best able to manage itCorrect
    • Always with the public sector
    • Wherever the funder prefers

    Demand risk placed on a contractor who cannot influence demand is priced heavily or refused; retained by the party that can manage it, it often costs far less.

Written questions

Optional - a lecture is complete without any. Add two-to-three sentence explanation questions where the multiple-choice quiz cannot tell whether an idea actually landed - as soon as one exists, a learner must pass it at 70%, the same platform-wide mark as the quiz, before the next lecture opens.

  1. 1. In two or three sentences: why should a project risk be allocated to whoever can manage it, rather than to whoever has the deepest balance sheet?

    managepriced heavilycontrolrefused

    2 of 4 have to appear to pass.

    Model answer: Risk should sit with whoever is best able to manage it. Demand risk placed on a contractor who cannot control demand is priced heavily or refused outright, while the party that can manage it may price it far lower.

  2. 2. In two or three sentences: why should some risks, like land acquisition delay, deliberately stay with government?

    land acquisitionresolvecheapertransfer

    2 of 4 have to appear to pass.

    Model answer: Land acquisition delay and permitting risk are usually cheaper for government to hold than to transfer, because government is the party that can actually resolve them. Transferring them anyway is an expensive way to look prudent.