Disruptive technology risk

Heavy rail Heavy rail

Description (What is the Risk)

The risk that a new emerging technology unexpectedly displaces an established technology used in existing rail ROT sector.

Risk Allocation (Who typically bears the risk)

Allocation: Public Private Shared
Rationale

Not usually addressed as unlikely to be considered a 'thread' to the infrastructure. Technological change will mostly reduce cost and increase efficiency.

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Description (What is the Risk)

The risk that a new emerging technology unexpectedly displaces an established technology used in existing rail ROT sector.

Risk Allocation (Who typically bears the risk)

Allocation: Public Private Shared
Rationale

This risk is unlikely to be passed to the Private Partner in an emerging markets ROT project where technology is unlikely to be a major component of the project.

Mitigation Measures (What can be done to minimize the risk)

Obligation on Private Partner to provide service which seeks for continuous improvement for minor changes.

Government Support Arrangements (What other government measures may be needed to be taken)

Major changes would require a variation.

Comparison with Developed Market

Typically not dealt with as unlikely in emerging markets.

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