Mastering Risk Management

EXIT STRATEGY

Key performance indicators (KPIs) and key risk indicators (KRIs) are your eyes and ears and warn you of whether you have to consider your exit strategy and actually manage your business continuity plan (BCP). Suddenly, you realise that all those meetings about scenarios and staff training were worth it.

The contract will provide for contingency plans to cope with serious problems which arise during the term of a contract. However, there will be times when the contract has to be terminated. There can be many reasons why it may be necessary to exit the contract. Failure of the supplier or failure to deliver to the required standard or quality are the most obvious reasons. Action by the supplier which causes reputational damage can ...