Classification of risks
| Classification of risks | ||
|---|---|---|
| Type of risk | Risk definition | Potential consequences |
| Administrative risk | Risk related to delays or failure in obtaining necessary authorization by public or private entities to start the project | Delays, increasing of costs, decreasing of revenue |
| Expropriation risk | Risk related to delays or failure in expropriation procedures and/or increase of costs for necessary expropriations | Delays, increasing of costs |
| Environmental risk | Non-foreseeable risks related to contamination of the territory | Delays, increasing of costs |
| Risk of project modification | Risk related to modifications requested by contractors on the original project | Delays, increasing of costs |
| Risk of delays in approval | Risk related to delays in the approval of the project by public or private entities | Delays, increasing of costs, decreasing of revenue, redress application, contract resolution |
| Risk of execution | Risk related to the possibility of realizing the project nonconforming to the original plan agreed by the two parties | Delays, increasing of costs, decreasing of revenue, redress application, contract resolution |
| Risk of underestimation of costs | Risk related to underestimation of costs when the contract is signed | Delays, increasing of costs, decreasing of revenue |
| Risk of delays in realization | Risk related to delays in realization by the concessionaire | Delays, increasing of costs, potential resolution of the contract |
| Risk of demand contraction | Risk related to the concentration of the demand of services with established tariffs | Decreasing of revenue |
| Managerial risk | Risk related to potential increase of management costs, risk related to the provision of services nonconforming to standards, risk of failure in the provision of services | Disservices, increasing of costs, decreasing of revenue, decreasing of contractors’ compensation, redress application, resolution of the contract |
| Political risk | Risk related to potential change in regulations affecting the project; risk of change in political leadership undermining commitment to the project | Delays, increasing of costs, decreasing of revenue |
| Financial risk | Risk related to accessing funds | Delays, increasing of costs, decreasing of revenue, contract resolution |
| Classification of risks | ||
|---|---|---|
| Administrative risk | Risk related to delays or failure in obtaining necessary authorization by public or private entities to start the project | Delays, increasing of costs, decreasing of revenue |
| Expropriation risk | Risk related to delays or failure in expropriation procedures and/or increase of costs for necessary expropriations | Delays, increasing of costs |
| Environmental risk | Non-foreseeable risks related to contamination of the territory | Delays, increasing of costs |
| Risk of project modification | Risk related to modifications requested by contractors on the original project | Delays, increasing of costs |
| Risk of delays in approval | Risk related to delays in the approval of the project by public or private entities | Delays, increasing of costs, decreasing of revenue, redress application, contract resolution |
| Risk of execution | Risk related to the possibility of realizing the project nonconforming to the original plan agreed by the two parties | Delays, increasing of costs, decreasing of revenue, redress application, contract resolution |
| Risk of underestimation of costs | Risk related to underestimation of costs when the contract is signed | Delays, increasing of costs, decreasing of revenue |
| Risk of delays in realization | Risk related to delays in realization by the concessionaire | Delays, increasing of costs, potential resolution of the contract |
| Risk of demand contraction | Risk related to the concentration of the demand of services with established tariffs | Decreasing of revenue |
| Managerial risk | Risk related to potential increase of management costs, risk related to the provision of services nonconforming to standards, risk of failure in the provision of services | Disservices, increasing of costs, decreasing of revenue, decreasing of contractors’ compensation, redress application, resolution of the contract |
| Political risk | Risk related to potential change in regulations affecting the project; risk of change in political leadership undermining commitment to the project | Delays, increasing of costs, decreasing of revenue |
| Financial risk | Risk related to accessing funds | Delays, increasing of costs, decreasing of revenue, contract resolution |
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