Managing risk is an integral part of good management. It is a process that is best embedded into existing practices or business processes.6

The management of risks should therefore be an integral part of all aspects of procurement, including the development and management of contracts. This requires the identification of risks and, where appropriate, the implementation of risk treatments7 at key points in the procurement cycle. This in turn involves identifying the stages or events where risks are likely to be the highest and/or the adverse effect of an event or occurrence is likely to be the greatest. Wherever possible, the approach to managing risks for individual contracts should be consistent with the entity's broader risk management framework. It should also involve the periodic revision of risk assessments undertaken and the enhancement or modification of risk treatments where required.

Further information about risk management is available in the AS NZS 4360 and the companion Risk Management Guidelines issued by Standards Australia.8

The management of risk should be an integral part of all aspects of procurement.