What's the meaning of "The risk of A and the allocation of B should be assessed for determining C"

Imagine that the renter breaks the dishwasher. The housing provider blames the renter, but the renter claims that the provider is liable. Essentially, they are playing the "blame game."

Now let's look at your sentence.

In this example, the risk of inadequately protecting the consumer and the allocation of liability on the housing provider should be assessed for determining whether the parties are knowingly allocating – and accepting–risk.

The goal of the sentence is to answer: "How do we know if the renter and provider are informed about who is liable?"

It is saying that there are two factors that should be assessed to answer this.

The first factor is the risk of not protecting the renter well. This means that the renters should not be liable for any damage.

The second is the provider is liable. This means that the provider is liable—not the renter.

The paragraph also talks about neglecting the "effects of their actions on third parties." From the context earlier in the paragraph, we can assume that the "third parties" about whom they are writing are most likely insurance companies. This means that the sentence we are analyzing most likely has to do with liability that is specifically for insurance purposes.

Also, the next (and last) sentence in the paragraph (which I found via a Google search) is "A market without clear attribution of risk creates uncertainty and challenges its long-term functioning." This sentence clearly elucidates the meaning of the previous sentence. It shows that the paragraph was about explicitly assigning risk.

Now, let's sum it up. The sentence essentially means: "it must be known that the provider and renter both know who is assigned (and accepts) risk." "Risk" in this context most likely refers to liability with respect to insurance.