Risk Management, 5th Edition

Appendix A: Contractor Risk Management

Organizational Responsibilities

In putting work out for bid, the purchasing agency must accept the fact that risk management is a key part of a procurement strategy. Thus, it is best for the organization to establish a formal plan of risk assessment and response very early in each major project or program. This plan considers contractor and internal organizational risks. Assessment and analysis of each significant element of project risk should continue throughout the purchasing or procurement cycle. The procurement strategy ought to be designed to lower risks to acceptable levels. The internal purchasing or contracting agency should include requirements in the requests for proposals (RFPs) for risk management ...