Risk in Clinical Trials: Why Small Biotechs Should Embrace It, Not Avoid It

Marion Kappert

Written by Kieran Engels

Kieran brings together investors, growth drivers, clinical experts, and specialized partners to help clients optimize vendor relationships, overcome clinical trial challenges, and accelerate access to impactful therapies.

July 23, 2025

Risk in Clinical Trials is often treated as something to minimize or push aside. But it isn’t unavoidable; far from it, it’s essential to progress. As Seuss+ CEO and Co-Founder Kieran Engels shares in her LinkedIn series, The Vendor Edge, teams that understand, structure, and work with risk are better positioned to hit milestones, manage vendors effectively, and avoid costly delays.

Read the full original article on LinkedIn: I Love Risk (And I’m Not the Only One)

 

Why Risk Belongs at the Center of Clinical Development

Clinical-stage biotech leaders often share one trait: a higher appetite for risk. Advancing a drug asset through multiple trial phases, despite the very real chance it won’t succeed, requires calculated risk-taking. But regulatory changes over recent years have moved risk from a side note to a critical quality and compliance factor.
Instead of hoping for the best, sponsors now need to:

  • Identify risk early in vendor relationships.
  • Integrate risk assessment into governance frameworks.
  • Make risk part of trial design, not just a line item in reports.

This approach aligns with Seuss+’s Vendor Relationship Maximization Method (VRMM), where risk is built into vendor strategy and oversight from day one.

 

Where Sponsors Go Wrong With Risk in Clinical Trials

Many biotech teams make the same mistakes:

  • Overconfidence: Assuming past success means future trials will run the same way, leaving gaps in contracts or oversight.
  • Outdated Models: Relying on old vendor governance approaches despite new regulatory guidance.
  • Hiding Risks: Avoiding uncomfortable conversations with vendors or investors, which leads to bigger failures later.
  • Ignoring Small Gaps: Overlooking vendor incentives, subcontracting risks, or weak data integrity processes that eventually compound.

From Reaction to Preparation: Managing Risk With Vendors

Risk doesn’t appear only when something goes wrong; it’s in every vendor decision, contract negotiation, and oversight process. Sponsors who embed risk management into vendor governance avoid firefighting mode and maintain study momentum.

Some examples Seuss+ has observed:

  • Rushed vendor selection leads to under-resourced teams.
  • Flexible vendor contracts create more risk for sponsors than vendors.
  • Assuming full-service CROs operate as one team, when subcontracting is often hidden.

Helping Biotechs Manage Risk

Managing risk in clinical trials isn’t just about identifying problems. It’s about structuring vendor partnerships so that risks are anticipated, measured, and actively managed throughout the trial lifecycle. Seuss+ integrates risk awareness into every stage of vendor engagement, helping biotechs protect both their timelines and their funding runway.

  • Vendor Strategy & Market Scan: Before selection, we evaluate vendors not only on technical capability and cost but also on financial stability, subcontracting practices, and historical delivery performance. By identifying misaligned incentives or operational gaps early, sponsors avoid selecting vendors that might fail under trial pressure.
  • Contract Negotiation: We safeguards sponsors by embedding risk controls directly into MSAs and work orders. We negotiate clear deliverables, change order protocols, and escalation paths, reducing ambiguity that often leads to budget overruns and missed milestones. Our approach ensures vendors remain accountable even when trials shift unexpectedly.
  • Quality Management Systems (QMS): Beyond selection and contracting, risk continues in execution. We implement lean, inspection-ready SOPs that allow sponsors to oversee vendors effectively without overburdening internal teams. This includes risk-based oversight plans, deviation tracking, and governance frameworks that keep all parties aligned with ICH-GCP standards.

Through our Vendor Relationship Maximization Method (VRMM), Seuss+ transforms risk from a reactive burden into a structured decision-making tool. By centralizing vendor oversight, we help biotechs stay ahead of issues, maintain board-ready visibility, and build trust with investors by demonstrating operational control.

Contact Seuss+ to discuss how structured vendor governance and VRMM can help you reduce costly delays.

Read the full original article on LinkedIn: I Love Risk (And I’m Not the Only One)

 

 

Key takeaways

  • Risk in clinical trials is not something to minimize or push aside, it is essential to progress.
  • The most common vendor risks come from misaligned incentives and unclear contract terms, not from bad luck.
  • Regulators now expect sponsors to show clear evidence of risk assessment, so risk work and inspection readiness are the same work.
  • [ogs_entity format="name"] helps small teams structure risk instead of reacting to it.

FAQs: Managing risk in clinical trial vendor relationships

The most common risks we see stem from misaligned incentives and unclear contract terms.

Small teams often struggle to balance trial execution with vendor oversight. Seuss+ provides a structured approach through the Vendor Relationship Maximization Method.

Regulatory inspections now expect sponsors to show clear evidence of risk assessment and documented oversight of their vendors.

14
years of hands-on vendor optimization
Seuss+
55+
biotech programs supported
Seuss+
10+
therapeutic areas of expertise
Seuss+

This organized, dedicated and enthusiastic team goes the extra mile to guide you to a final, highly data-driven decision, which meets your business needs.

Vice President of Clinical Development, Drug Co-Development Company

Turn vendor risk into an advantage

Talk to the Seuss+ team about structuring risk in your trial.

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