Shant Boyajian: Risk Allocation
From Olga Petrova
In this video, Shant Boyajian, Partner, Nossaman LLP, explains how infrastructure owners and contractors are developing new vehicles to share risks. He indicates that is ideally best to identify risks at the outset of an infrastructure project. However, some risks are unquantifiable or unknown, such as the remediation of hazardous waste on a construction site. In these instances, an allowance can be set aside above and beyond the agreed upon project price. Risk-sharing regimes are also being used to allocate changes in credit spreads or benchmark interest rates, as well as volatility in commodity pricing.