Business Development Framework
August 1, 2022
Win Strategy Development
January 19, 2023
Risk management is the seller’s strategy for managing or containing the risks inherent in a proposed approach or offer. The underlying assumptions are that every offer entails risk and that risk can be contained or reduced with appropriate management.
Some sellers prefer to avoid any discussion of risk. They correctly see risk as negative but incorrectly avoid discussing risk because it is a negative topic.
Customers know every offer entails risk; the best practice is to explicitly discuss how the risk in your offer will be managed. Government buyers of complicated systems are well aware of risk and require risk management plans in proposals. As a result, risk management practices, including formal discussions of risk in proposals, are more advanced in government market sectors than the nongovernment sectors.
Company risks are internal concerns or gaps and are not relevant unless they affect proposal or performance risk.
Risk is normally associated with cost and schedule, but risk permeates every aspect of a program, including program management, technical performance, quality, service support, and security. Proposal teams often struggle to demonstrate that their solution offers the least risk. However, most customers recognize that superior value justifies increased risk. The key is to understand what degree of risk is acceptable to each customer.
