Commercial Risk Management

An intense two-day In-house training programme to help your commercial and management team reduce risk exposure and increase benefits by managing your commercial uncertainty more effectively

In-house Training Services and Consultancy

This In-house programme will explore and explain how the facets of risk can be successfully managed. It will also examine the potential for mitigating the main sources of risk including: organisational, technical, time frame, financial, supply chain, warranty period and through life support.

Ideal as an In-house programme for a commercial and management team of five or more it will:

  • Ensure a clear definition of commercial risk
  • Identify proven risk management methodologies in the current economic downturn
  • Understand commercial risk and its relationship with contract performance
  • Explore risks associated with contract pricing decisions and contingency provision
  • Understand the role of due diligence in formulating mitigation strategies
  • Provide guidance on managing the non-performing contractor
  • Categorise and prioritise the risks of terminating contractor contracts
  • Manage risk mitigation for positive technical, financial and commercial outcomes

Your next step is to call us now on +44 (0)20 7729 6677 or email us at info@falconbury.co.uk or use our contact form and find out how we can help. There are no commitments, and if we cannot help our advice and recommendations are free of charge.

Sample Programme

1. Defining commercial risk in the economic downturn

  • What are six top risks?
  • Writing a mitigation strategy
  • The cost of the risk occurring
  • Who is best placed to manage the risk?
  • Who owns the various risks?
  • Supply chain risks
  • Risk management strategies
  • Does partnering make a difference?

2. Risk management methodologies

  • Analysing contract terms and conditions/schedules
  • Laying off risk,. insurance and flow down to supply chain
  • Refusing to accept risks – impact on bid processes
  • Regular review and updating risks
  • Technical risks
  • Financial risks
  • Through life support risks
  • Milestone performance risks

3. Commercial risk and contract law

  • English jurisdiction
  • Offshore jurisdiction
  • Damages and penalty clauses
  • Failure to meet contractual obligations
  • Quality performance
  • Payment considerations
  • Material default
  • Buyer’s step-in rights
  • The 6 DEFCONS which can lead to termination

4. Risks associated with contract pricing decisions

  • Unable to negotiate effectively
  • Unable to manage contract changes
  • No incentive to complete on time
  • Quality suffers
  • No open book provision
  • Price variation formulae ill thought through
  • Exposing through life costs

5. The role of due diligence in mitigation strategies

  • Exposing financial risks
  • Exposing supply chain risks
  • Exposing professional competence
  • Establishing the track record
  • Insurance exposure
  • Project/contract management processes
  • Exposing resource timing and availability

6. Dealing with non-performance

  • Acquiescence!
  • Serving notice of breach
  • Injunction
  • Remedial action plans
  • “Without prejudice”
  • “Full and final settlement”
  • Termination
  • Step-in

7. Managing risk mitigation for positive outcomes

  • Active risk register
  • Unfailing contract review meetings
  • Spot audits
  • Project reviews by independent source
  • Apply Open Book
  • Co-located teams
  • Partnering and robust governance
  • Early warning mechanism and genuine problem solving

8. Implementing commercial risk strategies

  • A recommended route map
  • Cost and time
  • Mobilisation
  • Negotiation effort and costs
  • Senior management time and cost