In order to analyze risks associated with a project, the risks must be first properly identified. In other words, you need to think through all of the possible scenarios before the project proceeds so that the best course of action can be taken. One way to embark on risk management is to create a matrix with the issues and possibilities. The paper provides a list of areas of risk to consider. Risk balancing is key as it identifies the party most able to control and manage a particular risk, thereby providing an overall reduction in the risk of the project. For each of the outlined risks, you must allocate who in the process will be responsible for it. This can be the Owner, the contractor or both the Owner and the contractor. This is a crucial step in the process because it acts as a clear way to identify which party bears the risk. The market and how risks are viewed is constantly changing, what was acceptable in the marketplace prior to 9/11 and the ENRON situation completely changed following these occurrences. It is important to outline concisely each project's perceived risk so that the "overall risk picture" can be put into place. This type of methodical matrix at the front-end of a project will act as a guide throughout the procurement process that should be routinely checked and revised as needed or dynamics in the project change. This paper discusses several water projects and identifies some of the pivotal risks and solutions that were ultimately put into place. Includes table.