The thesis deals with risk management in Public Private Partnerships (PPP). The use of PPPs is increasing as it leads to lower public debt. The relationship between Public and Private partner is long term, therefore the associated risks have to be carefully identified and analysed. According to the Slovenian PPP Act, risk transfer between Public and Private partner is mandatory for the partnership if it is defined as Public Private Partnership. The use of PPPs is associated with different risks for all stakeholders involved, therefore the research was limited to the method of risk management, risk analysis techniques and organizational forms in the various forms of public-private partnerships. Due to the complexity and interdisciplinary nature of public-private partnerships, different approaches for risk management are required, both in terms of risk management in specific organization, project management and construction. The thesis presents different methods of risk management. Numerical Monte Carlo simulation model for the determination of the overall risk cost is proposed. On the basis of the calculated expected value and variance of the overall risk cost, further analysis of risk-bearing capacity according to the presented model of risk allocation, can be carried out. The results may support the stakeholders during the decision making process and as such, they may increase the probability of success of the PPP.