Managing risk is an important aspect of managing service delivery and must be reflected in the design of performance metrics. The fulfillment of the contract may be endangered by several kinds of risk, some within the supplier’s control and some beyond it. Identifying and controlling (by avoiding or minimizing) risks is a vital part of managing a contract. Business continuity plans and contingency plans provide backup strategies and actions to recreate/restore/relocate a business or project and are used to help prepare the client for possible situations where the supplier is unable to deliver contractual requirements. Guidance on risk management activities at the project level are discussed in Section 1-15, Manage Risks. Performance metrics should reflect risk management objectives.
