Contractual Risk Management Version 03 02 2004 2004

Contractual Risk Management Version 03. 02. 2004 © 2004 Associate Professor, doctor juris Petri Keskitalo The Faculty of Law, University of Tromsø

Go to Introduction to Contractual Risk Management (C-RM) Strategic C-RM Go to Operative C-RM

CONTRACTUAL RISK MANAGEMENT IN TRANSNATIONAL SALES CONTRACTS Version 03. 02. 2004 © 2004 Associate Professor, doctor juris Petri Keskitalo The Faculty of Law, University of Tromsø

CONTRACTUAL RISK MANAGEMENT: ”Risk management is a comprehensive view of the risk factors threatening the business operations and at the same time a systematic course of action, which aims at minimising the likelihood of risk materialising and the economic losses caused by the risk” Eero Luotonen

CONTRACTUAL RISK MANAGEMENT “CONTRACTUAL” RISK MANAGEMENT: - A systematic method for use of proactive contracting i. e. contract design and contract governance for the purpose of holistic management of risks to the firm - Alternative methods are for example: production-technical solutions finance-technical solutions insurances - Forms a part of the firm’s total risk management but adopts a view internal to the contracting activities for the management of the risks to the firm - Offers a common language for the various groups of professionals in charge of the firms contracting and risk management

CONTRACTUAL RISK MANAGEMENT “CONTRACTUAL” RISK MANAGEMENT: - Is based on an integration of the legal, economics and risk management perspectives to the management of the risks to the firm with help of contrating activities - Can be tailored for the purposes of the firms strategic and operative risk management: - Strategic contractual risk management will enable the firm to systematically develope and manage it’s contracting activities - Operative contractual risk management will enable the firm to systematically manage it’s single business transactions - Will enable the firms contracting activities also to fullfill the demands set by the ISO 9001 -standard

CONTRACTUAL RISK MANAGEMENT PROCESS: 1) Risk identification 2) Risk evaluation 3) Risk mitigation - risk bearing - risk elimination - risk reduction - risk transfer 4) Risk management monitoring and control

THEORY OF CONTRACTUAL RISK MANAGEMENT: 1) Identification of strategies 2) Risk identification 3) Risk evaluation 4) Contractual risk mitigation Restart Go to Strategic C-RM Go to Operative C-RM 5) Monitoring and control of contractual risk management 6) Development of strategies and procedures EXIT

Power Point-show available at: www. jus. uit. no/ansatte/keskitalo/CRM-TSC. pps Comments to: petri. keskitalo@jus. uit. no