Large scale political impact is on the horizon. We have seen it before, we still have it today and in the future it is to be expected as well. To prepare for a large-scale political impact in day-to-day work, contract managers must make the following steps:
Contract managers should stay up-to-date on political developments, policy changes, and regulatory updates that could impact their contracts or operations. This includes monitoring government announcements, new laws, and political trends.
Conduct a political risk analysis to assess the potential impact of political decisions on contracts. Contract managers should identify political risks that may affect their contracts and develop strategies to mitigate those risks.
Engaging with stakeholders, both internally and externally, is crucial. Contract managers should communicate with legal teams, government relations departments, and external partners to stay informed and prepared for potential political impacts.
Be prepared to adapt and adjust contracts as needed based on political changes. This may include renegotiating terms, updating clauses to comply with new regulations, or seeking legal advice on potential implications.
Regarding the analytics needed to make informed decisions in the face of political impact, contract managers may require the following:
Utilize data analytics tools to analyze the political landscape, including tracking political events, government policies, and the potential impact on specific industries or contracts.
Implement risk assessment tools that can quantify and assess political risks associated with contracts. These tools can help contract managers prioritize risks and develop risk mitigation strategies.
Establish performance metrics that can measure the impact of political changes on contracts. Analyzing key performance indicators (KPIs) can provide insights into how political decisions are affecting contract performance.
Use predictive analytics to forecast potential political outcomes and their impact on contracts. By analyzing historical data and trends, contract managers can better anticipate and prepare for political disruptions.
I personally believe that the current political climate (both geopolitical and local) contains elements that require careful analysis of the contracts in relations to the supply chain and potential disruption risks. Contractmanagers should be the ones starting up this discussion from a generic and non biased mindset and run the different scenario’s.
Author: Arjen van Berkum
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