COURSE OVERVIEW
Contracts are legally enforceable agreements and serve as the primary framework through which organizations manage relationships and expectations with other parties. Risk is a critical element in the contracting process, and taking a proactive, thoughtful approach to risk management is essential for successful contract performance. Properly managing risks directly contributes to achieving targeted goals, preventing cost overruns, and ensuring timely, high-quality deliverables. This masterclass equips participants with practical skills to identify, analyze, mitigate, and monitor risks throughout the contract lifecycle.
LEARNING OBJECTIVES
By the end of this masterclass, participants will be able to:
- Understand the components of the risk management process
- Apply techniques to identify, analyze, mitigate, and monitor contractual risks
- Describe each phase of the four-phase risk management model
- Assess the impact of different approaches to risk allocation
- Explore contract types that can transfer or share risks
- Implement contractual techniques for effective risk allocation
- Develop and execute risk monitoring plans and strategies
- Reduce contract failures, costly changes, and overruns due to poor risk management
- Apply the total cost of ownership method for better risk identification and management
- Integrate risk management practices into contract administration
- Enhance service quality delivered by their teams
TARGET AUDIENCE
This masterclass is designed for:
- Personnel in Contracts, Tendering, Purchasing, Procurement, and Project teams
- Contract Administration, Engineering, Operations, and Maintenance professionals
- Risk, Claims, Financial, and Audit specialists
- Anyone involved in planning, evaluating, preparing, and managing tenders and contract specifications
TRAINING METHODOLOGY
This hands-on, results-oriented masterclass follows adult learning principles. Participants will engage in interactive lectures, discussions, role-plays, and practical exercises to apply key concepts in real-world scenarios. The course encourages active participation, Q&A sessions, and action planning to ensure concepts are translated into actionable skills. Pre- and post-course assessments measure skill improvement and learning effectiveness.
COURSE CONTENTS
Module 1 – Overview of Risk Management
- Importance of contractual relationships
- Defining and categorizing risk
- Development and evolution of risk management
- Gaining competitive advantage through risk management
- Risk categories for both parties
- Risk assessment and management processes
- Supplier qualification
- Internal controls and proportionality of control
Module 2 – Risk Mitigation and Management
- Establishing contracts with balanced risks
- Risk transfer through contract types:
- Firm fixed price / lump sum contracts
- Cost-reimbursable contracts
- Incentive contracts
- Award-fee pricing arrangements
- Using risk management post-contract to reduce conflicts
- Applying risk management during tendering
- Indemnities and their role
Module 3 – Risks Associated with Contract Clauses
- External events, force majeure, strikes, and labor disputes
- Risk and title transfer
- Assignment and novation
- Clauses requiring risk management between parties
- Clauses that flow down to subcontractors
- Subcontractor-associated risks
Module 4 – Management of Financial Risks
- Controlling payment-related risks
- Currency and economic risks
- Fraud and corruption prevention
- Limiting or excluding liability
- Distinguishing contractual liability from general law
- Gross negligence considerations
- Review of sample clauses from standard and real contracts
Module 5 – Contingency Measures
- Addressing mistakes and misrepresentations
- Impracticability of performance
- Remedies and types of remedies
- Liquidated damages and warranties
- Cover strategies
- Case discussions with real or hypothetical examples
- Course review and Q&A session
