| The need to make financial | Companies must decide which risks to accept, and price them correctly, while managing others by mitigating, passing on or insuring them. Every commercial organisation accepts risk to generate returns. To do this effectively, it must be able to define and manage the portfolio of risks it is exposed to. Much of a company's risk resides in its contracts-and can be controlled there. The focus on contract risk management is driven externally by regulatory authorities, and internally by management wanting to avoid contract penalties and catastrophic events. |