Introduction
One of the major functions of contracting is to ensure that risks to owners and contractor are identified and managed in a way that both parties are satisfied with the project outcome. GLOMACS has developed this interesting and fast paced seminar to provide participants with critical understandings of the risk mitigation process.
While a contract cannot, of itself, make risk “go away”, it can, and should, determine who is responsible for managing each individual risk, and for the consequences should the risk occur. This program starts with the first step in effective risk management which is to identify risks that can arise.
This requires the benefit of the experiences of those who have “been there-done that” and the exercise of sound business judgment, since not all risks are equally likely to occur, are treatable in the same way, or have the same impact.
Once the risk is identified, the program moves to the issues of allocating the risk to a party to the contract who is in the best position to control the risk with the least amount of financial exposure.
Expert identification and allocation of risk allows all parties properly to price the project, and minimizes the risk of unexpected problems rendering the whole project uneconomic for one or other party (or both!).
http://www.glomacs.com/courses/PM015.asp?sj=PM015