Risk management is a key strategic discipline and the effectiveness of an organisation’s risk management processes and policies is crucial in ensuring organisational objectives are achieved. Risk management associated with commercial activities (prospecting, bidding, contracting, implementation and contract management, contract completion and closure) has gained more attention from senior managers and project teams over recent years due to an array of corporate governance failures, supply chain challenges and economic pressures.
This 2 day workshop clarifies the strategic importance of commercial risk management and explores the risk management process, providing insight to a range of risk identification, analysis and mitigation tools and techniques. Practical exercises focussing on the commercial life cycle along with a range of templates will be included.
On completion of this workshop, delegates will:
- Understand how to identify, classify and analyse risks associated with the different phases of the commercial life cycle, including prime contracts and subcontracts.
- Be able to distinguish between risk, its causes and its effects
- Be able to select and apply a range of commercial mitigations in order to minimise the likelihood and impact of identified risks.
- Understand and be able to develop, manage or contribute to a commercial and/or project risk register.
- Appreciate the importance of carrying out due diligence of customers, partners and suppliers.
- Understand and apply risk allocation techniques related to customer projects, internal operations and suppliers.
- Develop an understanding of commercial project related risk management techniques such as schedule and cost risk analysis and earned value management.
- Appreciate the importance of risk management in the organisations governance approach.
- Defining Risk and Risk Management in the context of the commercial lifecycle
- Identifying and evaluating risks associated with the phases of the commercial lifecycle
- Identifying and classifying risks in prime and sub contracts
- Regulatory risk including those associated with trade controls, environmental regulations, health and safety, bribery and corruption, information management and trade controls.
- The importance of due diligence
- Analysing and costing risk and developing suitable mitigation strategies
- Developing mitigation approaches: treat, transfer, tolerate terminate
- Pricing for risk in contractual arrangements and managing flow down to sub-contractors.
- Risk management tools including risk management plans, risk registers, qualitative and quantitative assessment methodologies.
- Cost and schedule risk analysis and earned value management
Who should attend
Suitable for sell-side commercial professionals, project managers and others involved in commercial project life cycle management seeking to enhance their depth of commercial risk management understanding
This course can be readily customised or adapted to enable client specific policies, approaches, challenges and opportunities to be incorporated into the training materials and delivery.