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Activity Number:
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186
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Type:
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Topic Contributed
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Date/Time:
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Monday, July 30, 2007 : 2:00 PM to 3:50 PM
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Sponsor:
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Section on Risk Analysis
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| Abstract - #309148 |
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Title:
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Vendor Bid Evaluation Using a Risk-Adjusted Price Methodology
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Author(s):
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Deborah Cernauskas*+
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Companies:
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IBM
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Address:
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4541 Saratoga Ave, Downers Grove, IL, 60515,
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Keywords:
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risk adjusted price ; bid evaluation
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Abstract:
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The bankruptcy of a service provider is an operational risk faced by any firm outsourcing business functions. The firm with the lowest bid is not necessarily the firm with the least risk. This article focuses on developing a risk adjusted price comparison methodology for multiyear contracts. A risk adjustment methodology for counterparty risk is developed using market expectations of service provider default risk. The risk adjusted price enables a comparison of the expected contract price versus the nominal price.
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- The address information is for the authors that have a + after their name.
- Authors who are presenting talks have a * after their name.
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