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Financial Risk Management with Foreign Institutions From a Central and Departmental View Presented by: Bob Stemple, Associate Director Research Revenue Peggy Bartek, Sr. Grants Administrator MGH Center for Global Health. Setting Expectations. Specific deliverables Scope Communication
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Financial Risk Management with Foreign Institutions From a Central and Departmental ViewPresented by: Bob Stemple, Associate Director Research RevenuePeggy Bartek, Sr. Grants Administrator MGH Center for Global Health
Setting Expectations • Specific deliverables • Scope • Communication • Cultural Who? What? Where? When?
Assessing Collaborators • Financial systems • Technical expertise • Environmental factors (economic, geographical) • Past performance, questionnaires
Building an Agreement • Clear deliverables • Contractual language as protection for all parties • Managing risk, never eliminating it • Engaging local counsel • Third parties – NGOs, hospitals, universities
Types of Agreements • Fixed price – what happens when currency fluctuates? • Milestones – what happens when milestones are not met? • Custom agreements
Managing Risk - Ongoing • Fluctuating exchange rates – who takes the hit? • COMMUNICATION! – local and foreign • Roles and responsibilities – collaborator and foreign PI • Training for local administrators • Petty cash at foreign sites
Subcontract from a hospital in SpainContract states to be invoiced and paid in U.S. Dollars
Subcontract from a hospital in SpainContract states Budget in Euros
Subcontract from a hospital in SpainContract states to be invoiced in Euros
Subcontract from a hospital in SpainContract states to be invoiced & paid inEuros
Subcontract to a hospital in JapanContract states to pay in Japanese Yen
The money will fit together with the research, if we work together as a team!
You CAN control the research, you CAN’T control the world economy.Be sure to negotiate to get terms in US Dollars