Identify Risks Sample Clauses

Identify Risks. By identifying risks the objective is mapping what events (risks) may threaten the achievement of the procurement objectives. For this purpose it is necessary to use the critical success factors (CSF) as a starting point and reformulate them into risks. It is important to think about the whole period of use of the innovative solutions and to include an operating perspective on the goods and services being purchased. Long-life cycle of the products shall be taken into account. Risks should be described as specifically and clearly as possible. This will provide a good basis for both the risk assessment and the preparation of measures. Write a list of the risks that have been identified, including a detailed description of each one. Here are some examples of types of risks that in general are relevant to public procurement of innovation (they will be explained in a more detailed way below): • Organisational risks: political priorities (changes in political priorities), reorganisation (the process is often driven forward by committed enthusiasts, and if these people leave, it may have a large effect on the project), internal expertise (the organisation often does not have the necessary specialised expertise, procurement expertise or innovation expertise internally), time (sometimes a public procurement of innovation takes longer than estimated) or funds (it can be demanding to set aside funds to a development process that will last several years). • Technological risks: lack of technology or technological challenges (with projects using new technologies, there may be risks associated with whether the 7 Risk Management in Public Procurement of Innovation. (Direktorate for Forvaltning og IKT). solutions are compatible or can be adapted to existing technology. Market readiness for a new type of technology may also be uncertain). • Market risks: market competition (it may be especially risky to end up in a lock- in situation where you are reliant on a supplier that has developed a long term unique solution: vendor lock-in) or price (one of the greatest elements of uncertainty). • Other risks: inherent to the tendering process (if it has to be interrupted due to errors it can delay the process) or associated to the user perspective (the risk of whether the users can utilise the new solutions, and whether the gains turn out to be as expected).