Risk Management – Subcontracting

Risk management and evaluation of subcontractors and suppliers is essential for the lifespan of the offer. Once they identify the need for purchased items and create a list of potential subcontractors, the risk management process will start.

The subcontractor's risk assessment becomes more relevant, the more complex the supply and the fewer service providers to choose from.

The amount and importance of risk management takes place in this order from the most difficult:

If the system requires a complicated modified program based on an existing, patented software, copyright issues only allow the original owner of the code to be approached to change it as needed. This is a source of software development that is notoriously difficult and must be successful in microcontrollers. Similarly, if complex, tailor-made software is required, even if there are many subcontractors who are able to work, they are a very risky business and need careful management.

Hardware components specially designed for this project and requiring special manufacturing procedures require a high degree of careful risk management.

The next hazard of the chain is the special hardware. Again, this is probably a source item that is inherently a risk.

Alternatively, the risk of buying hardware or software for standard commercial (COTS) products, where different similar products are available, is quite low, but still exists and needs treatment.

In a nutshell, the order of risks ranges from the highest:

Single Source Software Development

Multiple Source Software Development

Simple Source Complex COTS Software That requires System Integration

Single Hardware Development and Manufacturing

COTS Software Support

COTS Hardware Supply

All of these scenarios carry different types and quantities of risks, requiring specific management plans.

In our next article, we look at and address the risks associated with the selection of potential subcontractors.

Source by sbobet

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