(Available also for Customised Training by Duration, Venue & Fee)
Programme Description
Contract risks are any uncertainties about the future that threatens the ability to accomplish a contract's mission. They can emanate from both parties or even from a third party. So, in the management of contracts we should note that risks are shifting from a compliance “management” to a “governance” perspective.
Course Contents
DAY ONE
Components of a Valid Contract
• Underlying economics of the contract
• Competent parties
• Legal purpose
• Offer and acceptance
• Consideration
Contract risks and why they arise
• A contract's lifecycle
• Common underlying causes of contracting risks
• Identify the risks
• Analyse the risks
• Evaluate and prioritise risks
Types of contract risk
• Cost overruns
• Quality failures
• Bad planning
• Ill-informed buying
• Deliberate contract manipulation
• Misinformation or miscommunication
Establish the context
• Balancing risks and opportunities in a commercial contract
• Costly or difficult commitments
• Acting in the best interest of own principal
• Ascertaining the business opportunities behind a contractual relationship.
DAY TWO
• Assessment of a Contract's Potential Risks
• Low, moderate, high, extreme
• How likely
• How frequently
• Possible effects
Transfer of associated risk exposures
• Indemnification
• Limitation of liability
• Waiver
Insurance and risk financing - size and scope:
• General commercial
• Professional
• Environmental
• Construction
• Fidelity
Financial Limitations of Aggravated Risks:
• Death
• Bodily injury
• Breach of security
• Breach of confidentiality
• Infringement of intellectual property
• Computer data loss.
DAY THREE
Making sure the contract delivers
• Constant and quality information
• Regularly reviewing your contract
• Management of your suppliers
Risk Management in key areas
• Prevention of financial loss
• Disaster recovery
• Business continuity
• Corporate crisis
Risk Sharing
• Subcontracting
• Outsourcing
Contract Review Checklist
