Managing Risks - Department of Public Works and Services

Some General Principles (cont’d)
Risk matrix is critical risk management tool
Should a risk matrix be included in
procurement documents/contracts?
Often misleading in defining true risk allocation
Beware of reliance on risk matrix as
substitute for detailed risk review
Contract language can contain subtle differences
from risk allocation assumed from matrix
Matrix may conflict with contractual terms or fail to
fails to clearly identify retained risks (e.g. if
contract liability caps exceeded)
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