Key points

1.

Resolution planning helps ensure continuity of critical projects and their orderly transfer to a new supplier in the event of supplier insolvency.

2.

When reviewing suppliers' Service Continuity Plans for critical contracts, ensure they include a supplier insolvency continuity element. Make sure exit plans and exit information cover emergency exit arising from supplier insolvency.

3.

Put in place our own contingency plans for critical contracts, with involvement from suppliers, keep them up to date and make sure they cover the risk of supplier insolvency.

4.

Ongoing financial monitoring enables early identification of possible problems and the opportunity to test contingency plans before they are needed.

5.

When considering the mitigation of risk against potential supplier insolvency, it is important to consider proportionality and the wider impact on suppliers and competitiveness.

Want to know more?

1. Resolution Planning Guidance Note. Support is available from the Cabinet Office via resolution.planning@cabinetoffice.gov.uk

2. Contingency plan template

3. Assessing the Economic and Financial Standing of Suppliers Guidance Note

4. Corporate Financial Distress Guidance Note