What are the best ways to manage risks during tender preparation?

2 Assess the risks

The next step is to assess the risks and determine their significance and priority for your project. This can be done by using a risk matrix, which plots the risks on a scale of probability and impact. The probability refers to how likely the risk is to occur, and the impact refers to how severe the consequences are if the risk materializes. The risk matrix can help you rank the risks from high to low, and to focus on the ones that pose the most threat to your project objectives. You can also assign a numerical value to each risk, based on a formula that multiplies the probability and impact, to quantify the risk exposure.

3 Mitigate the risks

The third step is to mitigate the risks and reduce their negative effects on your project. This can be done by using various strategies, such as avoiding, transferring, reducing, or accepting the risks. Avoiding the risks means eliminating them completely, by changing the scope, design, or method of your project. Transferring the risks means shifting them to another party, such as a subcontractor, supplier, or insurer, by using contracts, warranties, or insurance policies. Reducing the risks means minimizing their probability or impact, by implementing contingency plans, quality controls, or safety measures. Accepting the risks means acknowledging them and absorbing their costs, by allocating sufficient resources, time, or budget to your project.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?