Risk issues and related contract management tools and processes

Risk issue

Tool or process

Chapter/source

Risk

•  Information collection and analysis

•  Contract administration

•  Knowledge and information management

Chapter 5

Chapter 6

Chapter 7

Has the risk/risk allocation altered since the signing of the contract?

•  Governance of change management process

•  Ongoing review

Chapter 12

Chapter 9

What is the likelihood of the risk occurring?

•  Risk analysis

Chapter 2

Who is responsible for averting the risk?

•  Contract administration

Chapter 6

What needs to be done to avert the risk?

•  Contract administration

Chapter 6

How will it be done?

•  Contract administration

Chapter 6

When must it be done?

•  Project timetable/ milestones

Practitioners' guide

What do we need to do?

•  Contract administration

Chapter 6

Do we need to monitor compliance?

•  Risk analysis 

•  Governance, probity and compliance

Chapter 2
Chapter 3

How do we know if the private party has complied?

•  Performance monitoring

•  Reporting mechanisms

Chapter 11
Chapter 11

What do we need to do to avert the risk?

•  Contract administration

Chapter 6

Do we have the authority, power, resources and expertise?

•  Budget

•  Delegations register

•  Succession planning

•  Allocation of roles and responsibilities to contract administration staff

Chapter 3
Chapter 3
Chapters 3, 4
Chapter 3

What are the consequences if the risk eventuates?

•  Contract administration

•  Risk analysis

•  Default plan

Chapter 6
Chapter 2 
Chapter 8

What is the magnitude of the consequences if the risk occurs?

•  Risk analysis

Chapter 2 

How do we mitigate the consequences?

•  Issue management procedures

•  Contingency plan

Chapter 4
Chapter 8

Who else is affected by the risk eventuating

•  Stakeholder communication and consultation plan

Chapter 4

What should we do if the risk eventuates?

•  Contract administration

•  Contingency plan

•  Business continuity plan

•  Disaster recovery plan

•  Step-in plan

Chapter 6
Chapter 8
Chapter 8
Chapter 8
Chapter 8

What sanctions, remedies are available?

•  Contract administration

Chapter 6

Who do we tell?

•  Escalation procedures

•  Internal reporting mechanisms

Chapter 4
Chapter 3