Contract security
risk management
This function is implemented in the form of comprehensive support and analysis of security risks in each stage of the contract cycle: from generating requirements to the performance of contractual obligations by contractors. The key objective is to identify and minimise the risks of misuse of customer funds.
Comprehensive contract management stages
Comprehensive management of contracts includes interrelated stages.
Selective management of any individual stage is possible, if requested by the customer:
Verification of the justification of requirements
Risks to be identified: initiation of unnecessary procurement (repair of equipment covered by a warranty; purchase of supplies previously identified as undocumented, necessity of “emergency” procurement, etc.).
Procurement process credibility management
Risks to be identified: concerted anti-competitive actions of the customer’s representative and a procurement participant; breach of / non-compliance with procurement regulations by the customer; concerted anti-competitive actions of the procurement process participants (affiliation, collusion).
Contractual documentation assurance
Risks to be identified: Inconsistency of contractual documentation with the procurement process requirements; supplemental agreements detrimental to the customer relative to the initial contract (price increase, extension of period of contractual obligations by the contractor, etc.).
Business partner risk analysis given contractual terms
Risks to be identified: credit risk (in the event of prepayment); unreliable product origin and/or supply mechanism; factors affecting the ability to perform obligations (lack of production facilities, personnel, inventories, etc.).
Contract compliance monitoring
Risks to be identified: supply of low-quality/counterfeit products, overestimation of / failure to perform works/services; “lobbying” of payment terms for a contractor (unreasonable allocations / increase of prepayment percentage, shorter payment deferral / bringing forward of due date); failure to perform/replacement of works agreed upon in the initial contract (deletion, replacement with cheaper works without reducing the price).
