Risk Management and the Procurement and Contract Cycle
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Course outline
Part 1: Risk Management
Identify Risks
Explore the benefits of and the process of risk management and how it fits into the overall corporate governance structure for boards and CEOs. Establish the strategic and organisational context of the types of risk that affect boards and CEOs.
Analyse and EvaluateRisks
Once risks are identified, they can be rated and categorised. Using a priority framework, investigated are methods to plan for the likelihood and degree of loss or damage if risks are realised and the board’s and CEO’s role and responsibilities in risk analysis.
Treat Risks
The successful mitigation of risks is determined by sound organisational structure, correct resourcing and a clear communication and reporting framework. Conduct a gap analysis in key risk areas including succession planning, making quality decisions, resourcing for the future and impacts of changes to legislation.
Monitor and Review Risks
The role of an audit and risk committee is explored and the reporting cycle is revisited to ensure risks are monitored and reviewed. Critical documentation is considered in line with good corporate governance including the Board Charter, CEO’s employment contract and delegations and the role of key performance indicators.
Part 2: Procurement and Contractual Cycle
Concept
Procurement is defined as is the role of contracts. Good corporate governance is explored including the board’s role in setting organisational policy, purchasing strategies and appropriate resourcing. Purchasing strategies from a environmentally sustainable viewpoint are considered.
Design
Tendering methods are explored with the advantages and disadvantages of various options. Managing communication with external suppliers is considered and the evaluation of tenders is taken into account with the appropriate legislation (principally the Corporations Act 2001 and Registered Clubs Act 1976). The important aspect of drafting the contract is examined.
Implementation
The successful mitigation of contractual risks is determined by sound organisational structure, correct resourcing and a clear communication and reporting framework. Establish a contract management plan, the use of key performance indicators and reporting conditions to monitoring the contractor and set payment milestones.
Finalisation
The role of an audit and risk committee is explored and the reporting cycle is revisited to ensure the performance of the contract is monitored appropriately. Critical documentation is considered in line with good corporate governance including the Board Charter, procurement strategies and the role of key performance indicators.
Course information
AQTF Codes
- BSBRSK401A Identify risk and apply risk management processes
- BSBPMG408A Apply contract and procurement procedures