You must be logged in to download documents.
What is Risk Management
Effective risk management means taking a systematic approach to controlling, minimising and preventing exposure to risk, while still fully achieving your objectives. Few business activities are free of risk, Procurement is no exception. Every procurement exercise involves some degree of risk. Identifying, assessing, minimising and managing that risk is an important part of good procurement practice.
There are a number of different types of risk – all can have far-reaching and serious consequences. Typical procurement risks include:
Commercial – risk of non-performance or to reputation, market share, price control, quality and delivery
Intellectual – ownership of information
Operational – risks around business continuity
Financial – risk around business continuity and supplier stability
Legal – route to remedies and limitations to move business
Technical – non-compatibility with existing systems.