Systematic risk management and strategic control in public private partnerships

• Main Author: Nel, Danielle
• Published: 2014
• Subjects: Risk management; Public-private sector cooperation
• Online Access: http://hdl.handle.net/10210/10826

D.Litt et Phil. (Public Management and Governance) === Public Private Partnerships (PPPs) are contractual arrangements between the public and private sector, which are generally long-term in nature. If correctly implemented PPPs can mobilise socio-economic goals. The implementation of PPPs is to permit the delivery of continued, lucrative public organisation or services, by mobilising private sector proficiency and conveying a substantial amount of risk to the private sector, towards value for money. The incentive of the research is centred on the guiding principles of PPPs and the challenge of risk-sharing. The aim of this study is to encourage the systematic management and strategic control of PPPs in South Africa. In doing so, this study aims to determine how the PPP model can be improved to necessitate effective risk management in PPPs, and to provide for improved strategic control. The study supplies recommendations for improved practice, in both the public and private sectors, through strategic planning and shared apparata in PPP arrangements. Furthermore, the study suggests guidelines for effective risk sharing and management in PPPs, through integrated systems management. Integrated systems management proposes that the strategy, structures, systems and culture of PPPs are entrenched in organisational settings, in both the private and public sector, as well as in the PPP arrangement, to encourage capacity development and more developed institutions in South Africa. Effective risk management in PPPs necessitates the anticipation of risks; sufficient planning to address these risks and achieve project objectives; and, lastly, the entrenching of risk management within the organisation and project structures. The study commences with an overview of the development of public management and conceptual approaches of governance, providing a contextual synthesis of past and current theoretical perspectives. The study conceptualises the theoretical standpoints relevant to PPPs and the labelling of peripheral approaches. The research provides a synopsis of the role and functions of PPPs, international best practices in PPPs, and the nature of risk management in PPPs. This affords a foundation for investigating the trials and issues associated with PPPs and the challenges experienced in managing risks in PPPs. This is augmented with a systematic breakdown of the research design and methodology, to structure the research. In addition, a preliminary quantitative survey assessment is conducted, in order to derive preliminary findings for the primary analysis in the research.