The table below shows a partial sample of a risk assessment and treatment plan for the contract development stage. So far, only some of the risks have been entered the next steps are to assess the likelihood and impact, possible treatments and decide which treatments to implement. Remember that treatments may have costs, that need to be factored into the project budget, and possibly may affect the choice between suppliers. |
What could go wrong or change during contract development? | Likelihood (1) | Impact if it happens (1) | Overall Rating (2) | Preventative Steps (3) What can you do to stop it happening? | Contingency Steps (3) What will you do if it happens anyway? | Decision (4) |
Inadequate resourcing of contract development team |
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Insufficient access to end users to define their service level preferences |
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Suggested performance indicators might be impractical to collect |
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Required financial guarantees may not be forthcoming |
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... other risks as required ... |
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(1) For example High, medium or low (2) Judgement based on combination of impact and likelihood. (3) General responses include transferring the risk (for example, insurance), monitor and respond to the risk as needed, avoid the risk (for example by taking extra steps to avoid the risk happening). (4) Having identified risks and possible responses, what is the entity's decision (for example what preventative steps to take, what funding to allow for contingencies; or a considered decision to take no action.)