Presentation delivered by Dr. Giuliana Buscaglione and Ralf Lemster at the 2nd ProZ.com Conference - Oxford 2004

MANAGING BUSINESS RISK
Recognising and quantifying risks
Typical types of risk
How to read ‘tell-tale’ signs
Trying to quantify risks
Managing risks
Obtaining and verifying information
Minimum details
Precautions / risk-mitigation techniques
When risks turn into problems…
Staying in touch
Collection procedures
Dealing with cash-flow problems

TYPICAL TYPES OF RISK
Non-payment
Cash flow
Reputational risk
Other business risks

HOW TO READ 'TELL-TALE' SIGNS
Anonymous e-mail accounts
Lack of details
Inconsistent details
‘Top urgent’ jobs

Details of a job posted on ProZ.com:
URGENT DE>EN
I need help translating 3 .doc files (1532, 690 and 264 words) by 20.00 German time this evening. Two translators could perhaps shre the workload? ONLY NATIVE SPEAKERS PLEASE!!!

Please contact the outsourcer by email: [email protected]
Contact person: Katharina Gloeckler
Address: Hans-Baumann-Straße 35, Berlin, 01199
Phone: +49 30 569822
How to read 'tell-tale' signs

(What was suspicious about the job was the six-digit telephone number - the last time these were available in Berlin was 30 or 40 years ago... the IP details revealed that the job was posted from the UK.)

TRYING TO QUANTIFY RISKS
Estimated/expected job volume
Probability of default
Risk = Job volume * PofD
Own work vs. outsourced work
Financial exposure when outsourcing

Do you really want to accept doubtful jobs?

MANAGING RISK
Obtaining and verifying information
Minimum details required
Precautions to be taken / risk-mitigation techniques
Obtaining/verifying information
Checking IP header data

Return-Path: [ sender email address ]
X-Flags: 0000
Delivered-To: [ your provider ] to [ your address ]
Received: ( [ provider XXXX ] invoked by uid XXXXX); [ date ] [ time ] -0000
***Received: from server (EHLO name server) (IP address)***
by [ server ] (XX) with SMTP; ); [ date ] [ time ] +0100
Received: from XXX by [ server ] with local (data of server))
id XXXXXXXXXXX
for <your email address>; ); [ date ] [ time ] +0000
To: your email address
Subject: [ subject ]
From: sender email address
Reply-To: sender email address
Message-Id: <XXXXXXXXXXXXXXX>
Date: ); [ date ] [ time ] +0000

MINIMUM DETAILS
Contact details
Company name, contact name, department
Phone number (preferably fixed-line)
Fax number
E-mail address
URL

Job details
Job description and details
Delivery deadline(s) – date and time (including time zone)
Price and price definition (source vs. target, word/line/character count, including convention)
Payment terms

MITIGATING RISKS
Prepayment
20-40% down payment upon job placement
Competitive pressures vs. risk exposure
Partial deliveries
Invoicing for each project stage

DEALING WITH RISKS WHICH HAVE MATERIALISED
Staying in touch, setting deadlines
Collection procedures
Dealing with cash-flow problems resulting from non-payment