RCG204Best Practices in Managing Risks in Contracts and Outsourcing

COURSE SUMMARY

From procurement and sales contract to outsourcing contract and service level agreement, various risks and hidden pot-holes await the unsuspecting management team. This course aims to shade lights on how to manage risk in contracts and outsourcing.

COURSE DETAILS

Course Fee SGD 450
Course Duration 1 Day
Course Timing 9:00am - 5:00pm
Course Venue 190 Clemenceau Avenue
SDF Approved Coming soon
Skills Future Credit Coming soon
Upcoming Courses 5 Jul 2019
7 Aug 2019
5 Sep 2019

We read in the press that some high-profile contracts had failed miserably leading to costly litigation and major dent on their reputations. For century, contracts have been in the core of every business transaction small or big. The ability of a corporation in managing contract risk have been proven to be one of the main factors of survival, especially during volatile economy when non-performance and default run high. From procurement and sales contract to outsourcing contract and service level agreement, various risks and hidden pot-holes await the unsuspecting management team. From internal fraud risk to external litigation – managing contract risk have always been the major concerns of CEO, financial controller, procurement officer and the auditors.

This course aims to shade lights on how to manage risks in contracts and outsourcing

Upon completion of this course, the participants will

  • Appreciate that creating a right contract can save many pitfalls in the future
  • Able to identify the key phases in contract life cycle
  • Understand the major risks in each phase of the outsourcing management
  • Managing the fraud risk in procurement and outsourcing

1. Overview of Contracts and Type of Contracts

  • Legal Aspect and Integrals of Contracts
  • Offer, Acceptance, Consideration, Intention to Create Legal Relationship
  • Revenue, Procurement (Tangible and Services), Outsourcing
  • Corporate Transaction Contracts (Share or assets)

2. Contract terms and Outsourcing terms

  • Unfair, invalidity terms and conditions
  • Duration and penalties for early termination
  • Survivorship – matters that continue after the contract terminates
  • Main contractors and sub-contractors
  • Warranties, Quality, Service Level and performance bonds
  • Fees and costs, price limitations, ceilings and movements
  • Invoicing and payment, overpayments, underpayments
  • Contractor payments and performance
  • Cost control, Change management (variation order)

3. Risks in Contracting and Outsourcing

  • Managing Risk of Counterparty, Legal, Performance, Credit, AML
  • Risk Management – Minimize, Transfer, Avoid, Absorb
  • Managing Internal Contracting risk – Fraud and Corruption

4. Contracting Process Overview

  • Pre-contract due diligent (KYC, KYV, Creditworthiness)
  • Contract Negotiation (Terms, Jurisdiction, LD, Bonds, Force Majeure)
  • Negotiation – Beware of Psychologies Manipulation.
  • Contract Legal Review (Meaning, benefit, worse-case scenario)
  • Post Contract Monitoring

5. PPSS Approach in Managing Fraud and Corruption Risk in Contracting

  • People, Process, System, Strategy
  • Prevention, Detection and Deterrence framework (Proactive)
  • Investigation and Correction framework (Reactive)
  • How Data Analytics and Document Review can help

6. Outsourcing Management

  • OEM/D counterparty – Quality, Material Control, Cost, Settlement,
  • Confidentiality, IP protection consideration
  • Outsource services (labour, SSC, hotline, etc) – Service Level monitoring

7. Reviewing outsourcing contracts - about to begin

  • Why outsource – is business care transparent and approved?
  • Adherence to outsourcing procurement procedures
  • Framework for outsource relationship management established?
  • Performance indicators sufficient, reasonable and consistent?
  • Any additional terms to be included in an outsourcing contract
  • Staff competencies evaluated?
  • Risk registers aligned and complete?

8. Reviewing outsourcing contracts - mid-maturity

  • Is outsourcing meeting the business target?
  • Is relationship management going well?
  • Service level, remedies, penalties and other incentive working?
  • Does the contract measure up to expectations?
  • Can more be obtained from the contract?

9. Reviewing outsourcing contracts - end-of-life

  • Was the business case delivered?
  • Was the contract good value-for-money?
  • What was learnt from the contract?
  • Should the contract be extended, in-sourced or re-tendered?

10. Dispute Resolutions

  • Performance monitoring mechanism – early detection
  • Credit and security bond management
  • Alternative dispute resolutions – mediation, arbitration
  • Preparing for litigation
  • CFO, Finance Managers, Accountants
  • Procurement Manager, HR managers
  • Internal auditor, Audit manager, audit directors
  • Control and compliance officers, Risk manager,
  • Forensic auditor, Loss prevention and Fraud Prevention Officer
  • External auditors, Regulatory agency staff

Presentation, group discussion, case study. Multimedia and template sharing

Kent Hoh

Kent Hoh

Kent Hoh is a prolific trainer in audit, fraud investigation, corporate governance, personal effectiveness, blockchain technology and big data. He has over 20 years’ experience in leading internal audit and forensic investigation functions of MNC in the region and globally. Kent Hoh has also spearheaded several roles in financial management, compliance and corporate governance of technology company. Kent has conducted numerous audit and investigation projects in Americas, Asia and Europe including Singapore, Indonesia, Malaysia, Thailand, India, Pakistan, China, Japan, Australia, New Zealand, Brazil, Hungary, Poland, Italy, Germany, USA, etc. Some of these projects involved hundreds of million dollars fraud scheme and syndicated crimes.

Kent holds a master’s degree in business Admin (MBA), Graduate Diploma in Business, Bachelor of Law (Hons), and a Bachelor of Accounting (Hons). Kent Hoh is also a Certified Fraud Examiner (CFE) and Certified Internal Auditor (CIA). He possesses the qualifications of the UK Chartered Secretary and Administrator (ICSA), Malaysian Institute of Certified Public Accountants (MICPA), Certified Information System Auditor (CISA) and Certified Bitcoin Expert (CBIE).

Kent Hoh has been an active trainer for large corporations, SME and non-profit-organizations such as Institute of Internal Audit (IIA) Singapore, IIA Malaysia, Institute of Singapore Chartered Accountants, Malaysia Institute of Accountants, China IIA, China Enterprise Anti-fraud Alliance, Enterprise Financial Management Association of China. Kent Hoh is also an adjunct lecturer for universities and college in Singapore, Shanghai, Nanjing and Hangzhou, China. As an enthusiast in cryptocurrency and a bitcoin mining farm investor, Kent researched heavily into this revolutionized Blockchain technology. He teaches fundamental blockchain and cryptocurrency at various institutions in China.

Currently, Kent Hoh serves as the Vice President of Internal Audit in an SGX listed company. As a strong believer that knowledge sharing create synergy, Kent is very passionate in sharing his experience. He capitalizes his free time conducting training classes and workshops.

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