Presented by
Falconbury

Commercial Risk Management

An intense two-day training programme to help your commercial and management team reduce risk exposure and increase benefits by managing your commercial uncertainty more effectively

Find out more

  • Format: Bespoke training

Overview

This in-house programme will explore and explain how the facets of risk can be successfully managed. It will also examine the potential for mitigating the main sources of risk including: organisational, technical, time frame, financial, supply chain, warranty period and through life support.

Ideal as an In-house programme for a commercial and management team, this programme will:

  • Ensure a clear definition of commercial risk
  • Identify proven risk management methodologies in the current economic downturn
  • Understand commercial risk and its relationship with contract performance
  • Explore risks associated with contract pricing decisions and contingency provision
  • Understand the role of due diligence in formulating mitigation strategies
  • Provide guidance on managing the non-performing contractor
  • Categorise and prioritise the risks of terminating contractor contracts
  • Manage risk mitigation for positive technical, financial and commercial outcomes

Programme

1. Defining commercial risk in the economic downturn

  • What are six top risks?
  • Writing a mitigation strategy
  • The cost of the risk occurring
  • Who is best placed to manage the risk?
  • Who owns the various risks?
  • Supply chain risks
  • Risk management strategies
  • Does partnering make a difference?

2. Risk management methodologies

  • Analysing contract terms and conditions/schedules
  • Laying off risk,. insurance and flow down to supply chain
  • Refusing to accept risks – impact on bid processes
  • Regular review and updating risks
  • Technical risks
  • Financial risks
  • Through life support risks
  • Milestone performance risks

3. Commercial risk and contract law

  • English jurisdiction
  • Offshore jurisdiction
  • Damages and penalty clauses
  • Failure to meet contractual obligations
  • Quality performance
  • Payment considerations
  • Material default
  • Buyer’s step-in rights
  • The 6 DEFCONS which can lead to termination

4. Risks associated with contract pricing decisions

  • Unable to negotiate effectively
  • Unable to manage contract changes
  • No incentive to complete on time
  • Quality suffers
  • No open book provision
  • Price variation formulae ill thought through
  • Exposing through life costs

5. The role of due diligence in mitigation strategies

  • Exposing financial risks
  • Exposing supply chain risks
  • Exposing professional competence
  • Establishing the track record
  • Insurance exposure
  • Project/contract management processes
  • Exposing resource timing and availability

6. Dealing with non-performance

  • Acquiescence!
  • Serving notice of breach
  • Injunction
  • Remedial action plans
  • “Without prejudice”
  • “Full and final settlement”
  • Termination
  • Step-in

7. Managing risk mitigation for positive outcomes

  • Active risk register
  • Unfailing contract review meetings
  • Spot audits
  • Project reviews by independent source
  • Apply Open Book
  • Co-located teams
  • Partnering and robust governance
  • Early warning mechanism and genuine problem solving

8. Implementing commercial risk strategies

  • A recommended route map
  • Cost and time
  • Mobilisation
  • Negotiation effort and costs
  • Senior management time and cost

Run Commercial Risk Management Bespoke training for your team

2 days

Typical duration

Pricing from:

  • GBP 800
  • Per attendee
  • Course tailored to your requirements
  • At your choice of location, or online

 

We don't have any currently scheduled dates for this course but we can customise it to your requirements and deliver it on an in-house basis for any number of your staff or colleagues.

Contact our in-house training expert Aleksandra Beer to discuss your requirements:

Multiple colleagues?
Talk to one of our training experts to discuss how to:

Run this course conveniently and cost-effectively in-house for your staff and colleagues

Aleksandra BEER
Training expert

+44 (0)20 7749 4749

inhouse@ipi.academy