Bus 505 Assignment2

IV. Identify three (3) risks of the bid strategy and then develop three (3) opportunities to mitigate each risk. After identifying the customer key evaluation requirements I have identified three risks that may affect our bidding strategy. First, I want to identify why it’s important to know your risks when creating a bid strategy to help you understand why I choose these top three risks. Risk management is the process of identifying risk issues and the options for controlling them, commissioning a risk assessment, reviewing the results and selecting amongst the assessed options to best meet the goals. The purpose of risk analysis is to help managers better understand the risks (and opportunities) they face and to evaluate the options available for their control. (Vose software, 2007)
The top risk of the bid strategy for this company would be price. Price was selected as the top risk because although the company would like to win the bid, the price has to be within a range where they could also make money. The second risk selected is Logistics. This risk was selected since the product has to travel overseas. Depending on the time frame and the cost to have the product shipped the product may not make it to the destination in time. It is very important to have the product delivered in a timely manner to satisfy the end user requirements. Thirdly, the last risk selected is Customer Commitment. Our company must follow all the requirements in order to make the end user happy. Since the product is going overseas it will be hard to follow up on maintenance. Without having our own personnel at the end user location or close to the location it will also be a challenge if there are any issues with the product.

Based on the three risks of the bid strategies that were selected there are also three opportunities to mitigate each risk. First we have the price, now when negotiating on the rate we will really need to do our research. It’s