Explain the risk management measures typically required in SAMPADA proposals?

• A. Relying on a single supplier with no contingency.
• B. Ignoring potential risks to expedite funding.
• C. Identification of market, price, supply, and credit risks with mitigation strategies like contracts, hedging, and diversified sourcing.
• D. Assuming risks do not exist.

Answer: (C)

Risk management in SAMPADA proposals focuses on recognizing the different kinds of risks that can affect a project and laying out concrete actions to reduce their impact. By identifying market, price, supply, and credit risks, you show you’ve thought through where trouble could come from and what to do about it. Mitigation strategies like contracts help lock in supply and price terms, hedging provides protection against price swings, and diversified sourcing reduces dependence on a single supplier. This combination demonstrates a proactive plan to keep the project viable even when conditions change, which is what funders look for. In contrast, relying on a single supplier with no contingency creates a single point of failure; ignoring potential risks to speed up funding signals a disregard for possible problems; and assuming risks do not exist is simply not realistic in project planning.