Development and evaluation of risk mitigation techniques for social impact bonds

Abstract

The objective of this dissertation was to develop and evaluate risk mitigation techniques for Social Impact Bonds in order to attract more institutional investors and thereby, scale the social impact of this financial instrument. This dissertation reviews the literature on the topic of Social Impact Bonds. It analysis this new financial instrument from the perspective of risk mitigation by developing techniques that allow a more holistic approach to allocate risk to various stakeholders of Social Impact Bonds. Comparable financial instruments such as Public- Private-Partnerships were therefore analyst with regards to their risk mitigation techniques. Finally, interviews with practitioners were performed and further experts were surveyed. The dissertation concludes that risk mitigation techniques that evaluate and support the service provider and techniques that focus on the cooperation and contract between governments and investors have the highest ability to reduce risk to investors.

Date of Award	2015
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Ricardo Reis (Supervisor) & Joaquim Miranda Sarmento (Co-Supervisor)