Managing Commercial Risk

“Delegate feedback was exceptionally good”

Commercial Risks are inherent in both day-to-day-business and formal contracts, and managing these risks effectively will reduce liabilities, and improve margins. For a quick assessment of the risk exposure in your business, check out the 12 questions below.

Launched in 2011, BVAA’s Managing Commercial Risk training course was oversubscribed in July 2012, and delegate feedback was exceptionally good. Sixteen delegates each marked against five criteria and the average score was an exceptional 8.6 out of 10! Highest scores were given to the practical ‘toolkit’ of material delegates take away for future use back in their own business.

Course material has been prepared from real customer experiences worldwide over many years, with additional inputs from third party commercial and intellectual property lawyers and liability insurance specialists. The training is a mix of presentation, case studies and group participation and designed to raise awareness of key commercial risks and how to address them in practical terms.

If you, or any of your colleagues, would like to join the next session, please complete the BVAA Training booking form or email

Please be aware that this course is very popular and fills up quickly; places are limited.


Improve margins, reduce liabilities and minimise future risks

1. What terms and conditions of sale apply to your major projects and contracts, and to your day-to-day business? Where necessary have the terms been reviewed and approved by senior management?

2. Is the business working within the relevant corporate and legal guidelines, e.g. in respect of competition law, export compliance and the new July 2011 Bribery Act?

3. Is your confidential information and intellectual property adequately protected?

4. Are commercial risks in your major projects and contracts being fully assessed before order acceptance and contract signatures?

5. Are you suffering drawn-out warranty or contract performance disputes? Are your product specs for oem’s, and kpi’s for MRO clearly enough defined?

6. Are your margins being eroded by fluctuations in volumes, exchange rates, material costs or supplier prices?

7. Are your customers pushing you to engage in formal contracts with them?

8. Are you getting the most out of spare parts pricing?

9. Are your liabilities defined and capped? Are they in synch with your liability insurance policies? What steps can you take to limit/reduce your liability exposure?

10. Are you exposed to costs/risks if a project or contract is terminated? Are you locked into contracts/projects which are no longer attractive financially?

11. Are you exposed to product development costs without guaranteed payback through product volumes?

12. In negotiations, are your teams focussed on key drivers/issues for your business, as well as the customers? Are they getting the best out of the negotiations?

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