Which of the following is a plausible risk mitigation strategy in SAMPADA proposals?

• A. Relying on seasonal luck.
• B. No contracts and single-source supply.
• C. Contracts with buyers, hedging, and diversified sourcing.
• D. Delaying payments to suppliers.

Answer: (C)

In risk management for SAMPADA proposals, the focus is on stabilizing revenue, costs, and supply. Contracts with buyers provide guaranteed demand and predictable revenue, turning uncertainty into defined outcomes. Hedging helps shield against price swings by locking in costs or revenues through financial instruments, which is essential when inputs or outputs are volatile. Diversified sourcing spreads risk across multiple suppliers and locations, reducing exposure to any single disruption or price shock.

Other options don’t offer these protections: relying on seasonal luck leaves the project vulnerable to market and weather variability; no contracts with single-source supply increases both demand and supply risk; delaying payments to suppliers harms relationships and resilience, making the project less robust overall.