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The purpose of this paper is to investigate and uncover key determinants that could explain partners' commitment to risk management in public‐private partnership projects so that partners' risk management commitment is taken into the consideration of optimal risk allocation strategies.

Based on an extensive literature review and an examination of the purchasing power parity (PPP) market, an industry‐wide questionnaire survey was conducted to collect the data for a confirmatory factor analysis. Necessary statistical tests are conducted to ensure the validity of the analysis results.

The factor analysis results show that the procedure of confirmatory factor analysis is statistically appropriate and satisfactory. As a result, partners' organizational commitment to risk management in public‐private partnerships can now be determined by a set of components, namely general attitude to a risk, perceived one's own ability to manage a risk, and the perceived reward for bearing a risk.

It is recommended, based on the empirical results shown in this paper, that, in addition to partners' risk management capability, decision‐makers, both from public and private sectors, should also seriously consider partners' risk management commitment. Both factors influence the formation of optimal risk allocation strategies, either by their individual or interacting effects. Future research may therefore explore how to form optimal risk allocation strategies by integrating organizational capability and commitment, the determinants and measurement of which have been established in this study.

This paper makes an original contribution to the general body of knowledge on risk allocation in large‐scale infrastructure projects in Australia adopting the procurement method of public‐private partnership. In particular, this paper has innovatively established a measurement model of organisational commitment to risk management, which is crucial to determining optimal risk allocation strategies and in turn achieving project success. The score coefficients of all obtained components can be used to construct components by linear combination so that commitment to risk management can be measured. Previous research has barely focused on this topic.

The purpose of this study is to identify the antecedents of “power” and “dependence” attributes in the context of a construction project and to explore the impact of the antecedents on risk transfer and collaboration to develop a conceptual framework for decision-making.

A systematic review was performed using various databases to identify the antecedents and their measures. This review followed the established preferred reporting items for systematic reviews and meta-analyses protocols and 246 articles were identified. The articles were qualitatively analysed based on keyword co-occurrence approach using VOSviewer software.

The findings of this systematic review established latent constructs, that is, “clarity of procurement decisions”, “market structure” and “market competition” as antecedents of power and two antecedents of dependence, namely, “reputation” and “commercial importance”. And a framework was conceptualized to determine the contractual approach and the procurement design should be planned to take in account the scenarios and the course of action to enhance collaboration and control risk transfer.

To the best of the authors’ knowledge, this study is the first of its kind to identify the “antecedents” of the attributes of “power” and dependence and framework was conceptualized to determine the contractual approach.

This chapter aims to examine Bank Negara Malaysia’s (BNM) approach in fulfilling its financial consumer protection mandate from unfair contract terms and the statutory framework relevant for consumer protection in the domestic market. This is a qualitative-based research. Using content analysis, this study analyses BNM’s Financial Stability and Payment Systems Report from 2012 to 2016, specifically on the ‘market conduct and consumer empowerment’ to explore BNM’s prudential regulatory, supervisory and consumer protection roles in protecting bank consumers from unfair contract terms. It is found that even if a number of standards and guidelines have been issued by BNM in improving ‘fairness and transparency’, the potential risk facing bank consumers from unfair terms in standard consumer contracts of Islamic banks especially where terms may be unfair or unclear remains unchanged. This study recommends that BNM as the Central Bank and financial regulator of Malaysia promotes self-regulation of the Islamic banks by adopting value-based banking of a consumer-focussed culture in delivering an effective protection for consumers from unfair contract terms and empowering them in their dealings with Islamic banks in Malaysia. This study will be helpful in bringing a policy formulation by BNM in identifying their weak areas and suggesting improvements in pursuing a strong consumer protection agenda from unfair contract terms.

Construction project delays are described as a universal problem, which has led to many empirical studies. However, most of these studies were based on the rankings by respondents, and they were rarely verified. Therefore, the purpose of this paper is to explore professional perspectives on the causes of delay in the construction industry, where there has been little explicit consideration on this subject in recent decades.

A critical literature review and a qualitative approach was considered for a deeper and fresh understanding of the causes of delays, rather than recycling the existing themes and the risk of a statistically biased approach. A total of 41 interviews were undertaken which included the London Olympic 2012 project team.

In all, 32 themes were identified, which were categorised into 15 categories of causes of delay in the construction projects. Almost two-thirds of the main themes are not ranked top 15 causes of delay. These include knowledge and competence shortage, poor commercial decisions, unnecessary health and safety restrictions, poor risk management and poor space and logistics management.

Due to the qualitative nature of the study, the findings might not be considered as representative.

The findings provide consideration of the causes of delay in the construction industry as seen by practitioners, which should provide guidance to enhance performance.

The study contributes to the better understanding of the causes of delays by using qualitative research strategy which is limited in the construction management literature. This study is an empirical investigation into the causes of delay in the twenty-first century and it represents an important edition to the body of knowledge within the subject area.

The Built Operate Transfer (BOT) model has been increasingly used in transportation investments in Vietnam. However, there is still an inadequacy of risk management applications in these projects and lack of research in this area. The study aims to improve the success of projects implemented through the BOT model in Vietnam.

The study followed a sequential design including interviews and a questionnaire survey to investigate the perception of stakeholders from public and private sector regarding the probability of occurrence and the severity of impact of risks in BOT transportation projects in Vietnam. Quantitative data from the survey was subjected to descriptive and inferential statistics to explore the priority of risks as well as the differences in the perception between the public and private sectors.

The results showed that the top five most significant risks in BOT transportation projects in Vietnam are: (1) problems with land acquisition and compensation, (2) inappropriate location of toll booths, (3) public resistance to pay, (4) high toll rate and (5) lack of cash flow. With the exception of “lack of cash flow,” there were no statistically significant differences in the rankings of individual risks between the public and private sector. In addition, there is a significant positive correlation in the overall rankings of all risks for both sectors.

This study contributes to the body of knowledge by exploring the probability of occurrence and the severity of the impact of risks in BOT transportation projects in a developing country like Vietnam which has not been extensively explored yet. Second, it provides an insight into the perception of stakeholders from the public and private sector regarding the level of risks which is very useful for potential stakeholders in making decisions when they intend to participate in such partnerships. Third, it enables the Vietnamese government to establish suitable policies related to such projects. These contributions are very important in improving risk management in PPPs in developing countries.

Despite the fact that extensive studies on public-private partnerships have focused on risk identification and classification, research still lacks concentration on studying the latent structure of risks in build operate transfer (BOT) transportation projects, especially in developing countries. The research was carried out in Vietnam and this paper aims to explore the underlying relationships among risks in the context of BOT transportation projects.

A questionnaire survey was conducted to investigate the perception of stakeholders regarding the probability of occurrence and the severity of the impact of risks related to BOT transportation projects. Factor analysis was performed based on a total of 40 risks.

Seven risk groups were formed as a result of factor analysis, namely, “projects’ viability and political-regulatory risks”, “macroeconomic risks”, “projects’ feasibility study and market risks”, “financial risks”, “organization/coordination and force majeure risks”, “tolling, contractual, approvals risks” and “media and land expropriation risks”.

The research contributes to the current body of knowledge by providing deep insight into the structure of risks in BOT transportation projects in Vietnam through exploring the underlying relationships among risks, to form a latent risk structure from practical viewpoints. The findings are beneficial for involved stakeholders and policymakers to set up and propose suitable management strategies and related policies.

The evolution of risk management has placed some emphasis on the language of risk management practices. The classic categories risk control and risk financing, as umbrella terms for the range of risk management tools that may be employed, are still widely used – but as has been pointed out elsewhere in this book, the broadening of risk management has led to a reconsideration of the continuing accuracy and usefulness of the older terminology. For example, historically the term insurance-buying was expanded to include risk financing, which allowed recognition of newer, non-insurance tools. Similarly, loss prevention became risk control to include risk reduction, risk distribution, hedging, and more. More recently, risk treatment has emerged as a term that encompasses both the control and financing categories.

One of the significant changes in practice is the inclusion of opportunities that may arise from risks. Here the terminology has not quite kept pace with changes in the field. Additionally, while assessment and analysis has long captured the idea of evaluating risks and uncertainties, the more explicit inclusion of uncertainty, along with emergent phenomena, complexity, and the unknown/unknowable has led to questions about whether risk control meaningfully conveys the essence of these activities. The search for an alternative terminology is ongoing, but for the time being the term adaptive response (AR) is used here, which refers to a range of actions that could be taken to capture the full range of exposures.

Chapters Nine and Ten continue to use the term risk financing. This is more of a concession to practicality as, in any other setting, financial measures logically are ARs. Nevertheless, there are technical and substantive reasons to maintain some separation. But even here, the pressures of change are being felt. For example, while most risk financing arrangements focus on addressing the costs of risk (e.g. indemnifying an organisation for losses), the role of financial measures in encouraging or discouraging certain practices – including paying the risk manager’s salary, or incentivising certain desired practices – has historically not been considered in discussions

Partnerships are the British government’s preferred method of procuring public sector services, and the policy is usually justified in terms of delivering value for money. Ex ante financial methodologies are prescribed to ensure that decision making is based on a sound appraisal of alternatives and the government has called for an evaluation of implemented projects. This paper seeks to contribute to that evaluative process by exploring ex post facto some of the issues and problems that arose in practice. Using a case study approach, the paper considers two failures of information technology partnerships to examine how risk transfer, which is at the heart of the partnership policy, works in practice. The cases show that the contracts failed to transfer risk in the way that had been expected. The public agencies, not the commercial partner, bore the management risk and costs fell on the public at large and/or other public agencies.

The purpose of this paper is to employ an integrated approach of interpretive ranking process (IRP) and system dynamics (SD) for modelling the key risk factors for a typical construction project.

The risk parameters and performance measures applicable in the construction industry have been identified through extensive literature review and discussions with experts from the construction industry. Based on the literature review, a questionnaire was designed and 64 responses were considered. The list of 20 risk parameters and 32 performance measures relevant for a construction industry is reduced to five risk factors and five performance measure factors using factor analysis. IRP modelling is employed to examine the contextual relationships among risk factors and to rank them with respect to performance measure factors. Subsequently, the results of IRP model were utilised as inputs to SD analysis. The SD analysis is conducted for two models, namely, risk factor model and risk variable model to understand the impact of interventions offered by project management team on risk reduction and mitigation.

The developed IRP model shows that the risk factor dimension “construction management” has a high likeliness to occur during the construction phase.

The research demonstrates an application of proposed approach for a typical construction environment and hence the results cannot be generalised.

This research addresses real life complexities in construction project by modelling critical risk factors using an integrate approach of IRP and SD. The proposed approach would facilitate project managers to devise appropriate risk mitigation strategies for a construction project.