Risk reduction strategy

PPI4Waste Project is now working on collaborative activities and on how to build capacity for the preparation of coordinated public procurement of innovative solutions.

For this, several steps have to be taken. After finalising the report of targeted improvements from the demand side and drafting the market situation as well as the roadmap for improvement on functional requirements, the next step in the methodology is to open the path for the undertaking of preparation activities for the procurement implementation. This will be carried through a feasibility plan including different tasks.

The first task (Feasibility Plan for a real/concrete public procurement of innovation) aims at carrying out a feasibility plan for the involved core buyers and for the buyer’s group to uptake a collaborative PPI and to reduce risk associated to the uptake of PPI. This task is divided into two parts: definition of contract models and financing modelling of different approaches and development of risk reduction strategy. This latest task is being developed by UniZar-Obcp.

The first draft of the Common Risk Management Strategy includes an overall vision of risk management in public procurement of innovation, a brief description of the main types of risks that can be found in these procedures and finally, risk management in PPI4Waste project. This first strategy was presented to all partners for internal review in the Project Board Meeting (October 2016, Rotterdam) and all of them agreed on the specific risks identified by UniZar-Obcp (technological risks, market risks, organizational risks, societal risks, financial risks, turbulence risks…).

Next step is the evaluation and assessment of all risks, the creation of a “Risk Map”. A risk is assessed in relation to the likelihood of it occurring. And if it occurs, the task consists on determine what are then the consequences for the targeted objectives. So, the risk level is determined by multiplying the likelihood of the event occurring with the associated consequences (L x C = Risk level). When risks are identified, under consideration of the likelihood of them occurring and the consequences of doing so, it can be plotted in a risk matrix or a risk map. The matrix provides a visual representation of the risk factors that have been brought forward and makes it easier to communicate these to the different participants in the PPI process. At the present time, all partners are evaluating and assessing the identified risks (as low, medium, high). Afterwards, UniZar-Obcp will analyse the results and define a “PPI4Waste Risk Map”.