Risk Management

There are many different kinds of risk to consider when contracting.

It may be possible to eliminate or mitigate some of them “for free”, e.g. by adjusting a little on delivery- and payment terms and try to get as many of your preferences as possible incorporated in the contract. However, in practice it is seldom possible to have all wishes accommodated, so the remaining risks must be mitigated otherwise.

This can be done, for example, by using letters of credit, guarantees or credit insurance. It can also be done in other ways, and it has to do with i.a. whether you want to protect profit or “just” avoid losses. It is also about the risk profile of your supplies: Is it e.g. a license, a service, a standard product, custom-made equipment, or a combination? And is it “supply-only” contract or a turnkey contract ?