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Topics: Knowledge Management, Legal Project Management, Risk Management
What is the best risk transfer tool ?
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What is the best risk transfer tool ?
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Risk transfer is strongly connected to procurement (contract management). The "best tool" is to have an ongoing and good communication / collboration wirh the purchasing department (partly together with legal department).
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Support Peter, most efficient risk transfert is with procurement. Unless you saw it at the project negotiation and made change to the contract and didn't take the risk.
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Mind You....you are not transferring the Risk of Failure of your Project....You are only transferring the risk of Failure of that Task that you have just outsourced to another vendor because you evaluated that your internal resources did not have the bandwidth or the expertise to complete the task within the time frames or to the level expected of your scope statement.

You as the project manager still carry the risk of not being able to complete the project within the planned time-frame even if the external supplier fails. therefore , you need to still do audits of the supplier's invoices, monitor supplier performance.

in an insurance scenario, you just pay the insurer some amount of money to cover you , should the risk materialize. so you accept the risk and you prepare contingency funds to cater for the risk scenario.

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