Risks in Business Cooperation

Risks Business Cooperation

Know Your Risks in your Business Cooperation

Your understanding of your Business Value Chain will help you to manage and setup your Business Cooperation. In addition it will help you to know your Risks and how to mitigate them, which is essential when adding a Business Cooperation to your Business.

Listing and going through all the risks associated with a Business Cooperation can be daunting at first. However it is not as bad as it looks. Running a Business is a matter of managing risks so you already have the skill. Furthermore knowing your risks and putting mitigation in place is half of the job. The remaining part is to monitor and act if and when a situation should occur.

What are the risks with a Business Cooperation? How do you mitigate them? Let’s look at some of them.

Risks and their mitigation in a Business Cooperation


Non-Performance is a key risk for you to understand and monitor. Your supplier or partner do not deliver according to the agreed or expected Performance. It will hurt you since you are part of the solution to the customer. To be on top of this, you should have clear specs on what to deliver and secure a management system at your Supplier or Partner which can resolve any non-performance. In addition you should have penalties in place where possible to encourage delivery according to the specification.

Brand & Trade Marks

Securing the proper use of Brand and Trade Marks is important as it may hurt your name in the market. You will also get extra work to restore your reputation. If you list and agree with your Supplier or Partner at the setup on how Brand and Trade Marks can be used, this will give your relationship a good basis. Monitoring and bringing the matter to the Management Business Reviews for resolution is a good practice in your Manage the Relationship activity.


You need always to be aware of possible infringement risks, that is disputes over Intellectual Property Rights, and have proper measures in place to deal with the matter should it occur. When dealing with a Supplier or Partner, add Infringements rules to the Relationship.

Trade Compliance

Manage Trade Compliance should already be a part of your company procedures. When you add a business cooperation you must secure the responsibilities of each party. Depending on the extent of the relationship and who is putting what product to the market, there are different types of tasks that need to be setup. You need also to secure that your Supplier can deliver what is expected at all times during the relationship.


The sustainability of your Supplier or Partner is a key risk to understand and monitor. Setting up a relationship is a large investment in time and credibility, so you most probably want the relationship to hold during the expected life cycle. You need to know with whom you are dealing and realize  that not every company will fit your criteria for the cooperation. You need also to monitor the status and be ready for a Plan B should there be any sudden events changing your relationship.


A basic element in any business cooperation is to clearly set out how any sensitive information should be handled if it needs to be shared. The principle should be on a need to know basis only and clearly marked as Confidential or similar. Any confidential information from your Supplier or Partner should be handled as you handle your own confidential information.


Preparing for and manage your relationship are key elements in minimizing the risks of you Business Cooperation. Knowing your risks and their mitigation as well as securing that your Supplier or Partner also are aware will help you to manage the relation and securing your Business Objectives.

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