Risk Management is an integral part of the Contract Management process, particularly in the transition phase, ongoing management and succession planning associated with contracted goods and services. Effective contract management is also supported by legislative and procedural framework and the TriLine GRC system integrates your Contract Management system into that framework. The Risk Mitigation or Risk Management process is based on best practice models for Risk Management. It promotes a standard methodology for identifying, assessing, treating and monitoring risk. The Risk Matrix for Contract Management covers the essential steps from establishing context through to monitor and review. This includes Risk identification, Risk Mitigation, Risk Management and Risk Review. The two main Risks involved in Contract Management are Contract Risk and Contract Management Risk. TriLine GRC assists you to identify, manage, maintain and mitigate risks involved with Contract Management both internal and external. Risk categories are determined according to the details of the Contract but Risk Analysis will identify what business impact or Risk Consequences may arise.
Recording each specific Risk gives Management the opportunity to accurately assess the potential of the Contract and to alter or amend as required. Contract Managers also need to create Risk Treatments where they consider a combination of preventative and detective controls to minimise the risk of failures in contract service delivery. These detective controls (or preventative controls) assist the Contract Manager to minimise Risk for the organisation. The Risk Treatments are implemented to address Contract Risk Management policies and procedures and rely on a range of preventative and corrective controls.
Contract Management also involves Transition or Implementation, Ongoing Management of the Contract, Contract Succession and Evaluations – all can be managed or supported using the Contract Management Module in TriLine GRC.