Risk Management in Contracting from an In-House Perspective: A Study of Strategies and Best Practices
Keywords:
Contracting Process, Risk Management, Risk Mitigation, Types of Risks, Third-Party Risks, ContractsAbstract
This study is aimed at highlighting the critical role of the contracting process in risk management. The contracting process for commercial contracts in organizations is often not recognized as a risk mitigation tool by contract owners within the organization, the leadership, and even the owners/implementors of the contracting process themselves. Frictions often arise because it is erroneously regarded as an unnecessary bureaucracy delaying or preventing the organization from achieving its strategic objectives, rather than as an essential risk mitigation tool that protects the organization, and ensures the organization continues achieving its goals and objectives, grows its revenue, remains compliant, maintains its profitability, and meets the expectations of all its stakeholders.
The study therefore seeks to create an understanding that the contracting process is a critical part of the internal control mechanisms of an organization for managing and mitigating risks and acknowledge and appreciate the commendable efforts of the functions engaged in the contracting process for safeguarding their organizations against various risks.
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