Abstract
Appropriate risk allocation and sharing are significant critical success factors for public-private partnership projects, but evidence suggests that poor risk allocation practices prevail. This signifies the need to develop a robust model for assisting stakeholders in risk allocation decision-making. A non-additive fuzzy integral based multiple attribute risk allocation decision approach is proposed to effectively aggregate each stakeholder’s risk management capability assessment on accepted risk allocation principles that are derived from qualitative judgements and experience based knowledge of experts. Data collected from privately financed and developed power and transport infrastructure projects in Pakistan are used to demonstrate and validate the model for key risk factors that exhibit variable risk allocation preferences. Comparison of results with an additive aggregation approach confirms suitability of the adopted methodology as it performs better when modelling risk allocation preferences of experts due to its ability to handle interdependencies in the risk allocation criteria. Apparently, the allocation and sharing of key risks is significantly influenced by market, sector and project contexts.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
