Risk management in public-private partnerships and research agenda for transitional countries

The article surveys common risks that public-private partnerships (PPPs) face, discusses principles of risk allocation and identifies approaches to risk management. Additionally, the relevance of aspects of PPP risk allocation and management to partnerships in transitional countries such as Kazakhstan and Russia is deliniated. The article contrasts and compares few ways of categorizing PPP risks, and finds no major discrepancies between available approaches. The article emphasizes the need to focus not only on initial risk allocation in a contract between partners, but also on subsequent risk management. Due to emerging risks such as unanticipated changes in demand, risks may need to be negotiated and reallocated. The article argues that risk mitigation tools such as those that may increase demand for a partnership service have to be employed as they permit to raise revenue and contribute to the overall PPP success. For the discussed aspects of PPP risk management, the article suggests directions for future research in the context of a transitional country.