Any bid comes with risks in the program delivery phase, which could significantly impact the cost of the delivery program in that proposal. Recording and assessing risks prior to the submission of a proposal is the most accurate way to gauge the risk and confidence in your cost estimate.

Risks are both viewed and added from the RISK tab of your proposal.

1. Click on the RISK tab to view and edit proposal risks. Risks can also be accessed from the project or from the estimate
2. To add a new risk click the "Add Risk" link-text top right of the table. It will open a new browser session. Click reload button in the toolbar to see your added risk in the proposal heatmap
3. Existing risks, issues and opportunities will be displayed in blocks or groups based on the risk/issue type
4. Each risk, issue or opportunity comes with its own heatmap score derived from the combination of cost impact, probability and optionally severity, depending on the risk policy
5. Click here to learn how to enter your risk's probability of occurrence, cost, schedule or performance impact and the overall impact
6. The weighted cost impact for each risk is calculated from probability x cost impact, with the option to additionally take into account the risk's overall severity, depending on how your risk policy is set-up

The sum of all weighted risk cost (increase) impacts minus the sum of all weighted opportunity cost (decrease) impacts, when added to the estimated cost of your proposal, represents the mid-point or 50% confidence level risk adjusted cost for your proposal. This can be used in turn to determine expected margins at different confidence levels. For example:

• The sum of all risk weighted impacts above is $121,250.  There are no opportunities
• If the estimated cost of the proposal was $4,500,000 then the risk adjusted cost, at the 50% confidence level, would be $4,621.250

It is also beneficial to record risks during the proposal phase so that mitigation plans can be considered and ready to put into action should the proposal be won and you move into project delivery phase.