Using risk analysis from an early stage in preparing a bid can result in more accurate pricing and more business won. It can also improve your bid/no-bid decision-making process, making the difference between turning a profit and breaking even, or even worse, suffering financial and reputation loss.
Our risk consultants are industry experts who can join your bid team throughout bid preparation and into bid defence. Using Monte Carlo analysis, they will give you a platform for taking sound risk-based decisions
Risk identification workshop
The first step is to work with you to identify the potential risks that could arise by drawing on our experience, the bidding documents, as well as lessons from within your organisation.
We will use a risk map to facilitate a brainstorm session that identifies different sources of risk that may not be immediately apparent to members of your team, helping assess the potential for exploiting opportunities.
While assisting you to compile a well-defined risk position, our consultant will help you to determine those risks that are issues (impacting risks). We’ll also provide objective advice on what goes into the baseline and what is better managed through mitigation and contingency.
Risk analysis support
Looking at all the elements of your bid, including uncertainty estimates, schedules and identified risks, we will help you to determine which budgets and milestone dates are competitive, as well as giving you confidence that you do not have a significant exposure to failure due to lengthly schdule or cost overuns.
During the negotiation process, our consultant can become a member of your bid team to answer questions and provide justifications for the risk submission, defend mitigation expenditure allowances and support general contractual discussions.
You will then have greater confidence in your bid submission and defence:
- Understand and have prioritised the key risks to focus mitigation budget on, and which tasks your overall targets are sensitive to.
- Modelled different ‘what-if’ scenarios to see which cost and schedule options provide the biggest return with the lowest risk.
- Have a compelling narrative that justifies your decisions on budgets and targets
- Built a business case for negotiating appropriate risk out of the contract
We will brief the bid team to ensure everyone has a complete picture.