Risk Management – Sharing the Learning - Scenario 3

Programs with 3rd party vendor involvement

Potential Challenges:

• Dependency on other projects or parties whose outcome or working cannot be influenced by you.
• In case there are stringent SLA with penalty for SLA breach, multi party involvement can pose a potential financial risk

Mitigation Strategies:

• Joint risk planning and mitigation with the client and other stakeholders
• Well defined communication plan for client and also other stakeholders
• Enter into an agreement with the interfacing vendors (e.g. OLA – Operation Level Agreement). The agreement can define overall test requirements and gain commitment from interfacing systems to provide support during testing and implementation.
• Review of the SLA and other agreements from companies legal cell to ensure that we are not at financial risks due to some one else’s breach of contract / SLA.