# Operation of Water Supply Systems in the Czech Republic--Risk Analysis
## 3 Results and Discussion
#### 3.1.3 Analysis of Strengths and Weaknesses of the Compartmentalized Operating Model  
The identified strengths and weaknesses of the compartmentalized operating model are depicted in Table 7.  
The matrix shows that the strengths of this operating model are significantly more prevalent. The most notable strengths include the fact that the operator brings global know-how, has established control processes, an implemented risk management system, and can benefit from synergies. Another important strength is that an economically strong operator can achieve significant savings in operating costs and has sufficient expert staff. On the other hand, the most important weaknesses are the complex legal processes of preparing  
\begin{table}
\begin{tabular}{c c c c c} \hline \hline  & **Factor** & **Weight (W)** & \
\begin{tabular}{c} **Rating** \\ **(R)** \\ \end{tabular} &
\begin{tabular}{c} **Score** \\ **(W) \(\times\) (R)** \\ \end{tabular} \\ \hline \multicolumn{5}{c}{**Strengths**} \\ \hline
**1.** & Sufficient expert personnel & 0.1 & 4 & 0.4 \\ \hline \multirow{4}{*}{**2.**} & An economically strong operator can & & & \\  & achieve significant savings in operating & & & \\  & costs (e.g., bulk discounts on the & & & \\  & purchase of materials, energy, etc.) & & & \\ \hline \multirow{4}{*}{**3.**} & The operator brings its own global & & & \\  & know-how, established control system & 0.2 & 4 & 0.8 \\  & and risk management system & & & \\ \hline \multirow{4}{*}{**4.**} & With a properly concluded contract, the & & & \\  & municipality does not lose control & 0.08 & 3 & 0.24 \\ \hline \multirow{4}{*}{**5.**} & All risks are borne by the operator, the & & & \\  & rent is fixed for one year in advance & & & \\ \hline \multicolumn{5}{c}{**Weaknesses**} \\ \hline
**1.** & Early termination of the contract is & 0.1 & 1 & 0.1 \\  & difficult & & & \\ \hline \multirow{4}{*}{**2.**} & Profit from the operation goes to the & & & \\  & operator, the municipality loses part of & 0.1 & 1 & 0.1 \\  & the funds in the form of profit & & & \\ \hline \multirow{4}{*}{**3.**} & As the end of the contract approaches, & & & \\  & the operator is not sufficiently & & & \\  & motivated to treat water management & & & \\  & infrastructure in a sustainable manner & & & \\ \hline \multirow{4}{*}{**4.**} & Complex legal processes for the & & & \\  & preparation and implementation of the & 0.1 & 1 & 0.1 \\  & contract procedure & & & \\ \hline \multirow{4}{*}{**5.**} & Possible non-cooperation upon & & & \\  & termination of the contract (in case of & & \\  & disagreement)—the operator could take & & & \\  & away key experts and information & & & \\ \hline \hline \end{tabular}
\end{table}
Table 7: Analysis of strengths and weaknesses of the compartmentalized operating model (own source).  
and implementing the contract procedure and the difficulty of the early termination of the contract. Another important weakness identified is that the profit from the operation goes to the operator and the municipality loses part of the funds it would have gained by operating the system itself.