1.  IT Contracts – Risk Management Edmund Probert Marlene Naumann 21 March 2006

2.  Outline Contract and Risk Accepting the Risks Mitigation of Risk 1. Contract Specifications 2. Apportioning Risk 3. Contract Management General Issues Conclusion

3.  Contracts and Risks IT Contracts IT Supply/Integration Agreement Outsourcing Agreements Software Development Agreements Support and Maintenance Agreements Software Licences

4.  Contracts and Risks Principal Risks Uncertain obligations Non-Performance No Useful Remedy Unlimited Liability

5.  Accepting the Risk Due Diligence Credit Score Other suppliers’ experiences Accounts

6.  Contract Specifications Specification User’s Suppliers Change Timetable

7.  Apportioning Risk Acceptance Testing By the User or Supplier Procedure – who writes the test criteria? Mechanisms to Remedy

8.  Apportioning Risk Warranties/Indemnity An assurance or promise Breach = Damages Indemnity

9.  Apportioning Risk Limitation of Liability Death, personal injury, fraud Exclusion of types of Liability Capping Liability Insurance

10.  Contract Management Variation Facilitates a working relationship Avoids frustration and termination Regular reviews Project Manager Regular meetings

11.  Contract Management Dispute Resolution Senior staff / Mediation / Arbitration Exit Plan Assistance with data migration Additional payments Intellectual Property Rights Competitor Good Housekeeping

12.  Other Issues Confidentiality Intellectual Property Rights Existing rights New Rights

13.  Conclusions Risk v. Rewards Minimise Insure

14.  QUESTIONS?