What does monitoring risk and responding to Early Warning Indicators (EWIs) involve?

Monitoring risk and responding to Early Warning Indicators (EWIs) involves continuously assessing the risk landscape and making necessary adjustments. This process is essential in contract administration as it allows organizations to proactively identify potential issues that may affect the project's progress or outcome. As risks can evolve over time, regular monitoring helps in adapting strategies and mitigating threats before they escalate into more significant problems.

By focusing on continuous assessment, organizations can ensure that they are aware of any changes in the external and internal environments that might impact their contracts or projects. This proactive approach allows for better decision-making, resource allocation, and ultimately leads to a more successful management of risks throughout the life cycle of the contract. The identification of EWIs serves as a critical mechanism to alert management to potential risks, enabling timely interventions.