Who Should Bear The Risk? The Party Least Able To Refuse Or The Party Best Able To Manage The Risk?

McGregor-Lowndes, Myles & Ryan, Christine M. (2006) Who Should Bear The Risk? The Party Least Able To Refuse Or The Party Best Able To Manage The Risk?


The outsourcing of human services by governments to the nonprofit sector has been accompanied by a transfer of legal liability risks. Human service providers are often required to indemnify the government for adverse consequences of service delivery and to acquire contract specified insurances. The civil liability crisis caused by a recent hard insurance market has exacerbated problems for nonprofit organisations in managing the government’s transfer of risk of human service outsourcing.

This paper identifies and examines the risk shifting clauses contained in human service agreements across a range of Queensland government departments. It argues that it is in the interests of all parties of the risk to be allocated to the party best able to mange the risk rather than imposed by the party with the strongest negotiating power. It is argues that the prudent risk managemnt6 on the aport government may be to retain the risks so it can mange them itself

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ID Code: 5159
Item Type: Other
Refereed: No
Additional Information: Paper for the Accountability, Governance & Performance Symposium held in Brisbane, Qld February 17 2006.
Additional URLs:
Keywords: risk management, civil liability, insurance, human services, nonprofit, government
Subjects: Australian and New Zealand Standard Research Classification > LAW AND LEGAL STUDIES (180000) > LAW (180100) > Tort Law (180126)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Copyright Owner: Copyright 2006 (please consult author)
Deposited On: 26 Oct 2006 00:00
Last Modified: 05 Jan 2011 13:27

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