Discussion of key risks
The categorisation of risks below is a starting point for preparing the detailed risk analysis of an offshore contract. They should not be considered as either a complete or accurate reflection of all of the risks and mitigations that might exist in the unique circumstances relating to an agency's decision about an offshore contract. Instead, agencies should build on and amend the identified risks through internal and external consultation to capture all relevant risks and mitigations.
The risks discussed on the following pages are:
Big picture risks: risks that may put a proposal out of consideration regardless of its other virtues
Trust and public confidence risks: how a proposal may adversely affect the Trusted State Services Development Goal for the New Zealand State Services.
Control risks: the need to maintain control over data as required by, for example, the Public Records Act 2005.
Governance, management, and project risks: difficulties that may arise when management of a business function or project is geographically dispersed.
Economic risks: following procurement policy while considering possible effects on the larger New Zealand economy of an offshore proposal.
Business continuity risks: government responsibilities in maintaining capability in the country in the event of an emergency or a service provider failure.
Security and integrity risks: includes industrial espionage, social disruptions, terrorist threats, and data corruption.
Privacy risks: threats to government held personal information if sent offshore
Legal, jurisdictional and commercial risks: practical and legislation-related risks of doing business outside New Zealand
Fiscal risks: currency fluctuations, offshore taxes, and other financial risks
