Risk allocation, transfer and management in public–private partnership and private finance initiatives: a systematic literature review
International Journal of Public Sector Management
ISSN: 0951-3558
Article publication date: 30 June 2021
Issue publication date: 27 October 2021
Abstract
Purpose
This paper examines risk and risk management in public–private partnership and private finance initiatives (PPP/PFI). Despite growing interest in PPP/PFI, there are knowledge gaps in the literature. The authors’ aim is to analyse these knowledge gaps and define emerging themes to guide future research agendas.
Design/methodology/approach
The authors conduct a systematic literature review from 1990 to 2018 using the Scopus database.
Findings
The authors define six emerging themes: risk definition and types of risks; value for money (VFM) and risk; risk sharing, allocation and transfer; financial risk; contractualisation and renegotiation of risk; and risk management and governance. They proposed a conceptualisation of potential development of PPP/PFI research through the three phases of risk management cycle, i.e. prospective, real time and retrospective. This paper revealed some new aspects that could help to analyse better risk and risk management in PPP/PFI to reach value for money (VFM) and to exploit the potential of PPP/PFI.
Originality/value
Despite the increasing attention to PPP/PFI, further researches are required in relation to operational and post-operational risk studies, risk management and control, the role of trust. The authors’ analysis underlines the difficulties in how risk is perceived and how to ascertain VFM. In addition, the authors highlight how the increase of contract renegotiation is changing the provisions with reference to risk assignment creating market distortion. Risk should be managed as a cycle; PPP/PFI would benefit by engaging more with the risk management literature.
Keywords
Acknowledgements
The authors wish to thanks the journal editor and two anonymous referees for the support provided in the revision of the paper. The authors also wish to thanks Federico Stefani for analysis support. Despite the shared effort in the writing of the paper, its parts can be attributed as follows: sections §1, 3.2, 4.2, 4.4, 4.5, 5 and 6 to Mouhcine Tallaki; section §2, 3.1, 4.1, 4.3, 4.6, 5 and 6 to Enrico Bracci.
Citation
Tallaki, M. and Bracci, E. (2021), "Risk allocation, transfer and management in public–private partnership and private finance initiatives: a systematic literature review", International Journal of Public Sector Management, Vol. 34 No. 7, pp. 709-731. https://doi.org/10.1108/IJPSM-06-2020-0161
Publisher
:Emerald Publishing Limited
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