Procurement risk assessment and mitigation

Procurement risk assessment and mitigation is the process of identifying, assessing, and mitigating risks that may impact the procurement function and its ability to meet organizational objectives. It encompasses activities such as risk identification, risk analysis, development of risk mitigation strategies, and implementation of controls to minimize the impact of potential risks.

Beginner competence definition

Beginners have a basic understanding of common procurement risks and can support more experienced professionals in data collection and risk assessment tasks. They can assist in organizing risk-related information, conducting basic risk assessments, and contributing to the development of risk mitigation plans.

Intermediate competence definition

Intermediate-level professionals are able to identify and analyze procurement risks across various areas, such as supply chain disruptions, supplier performance, regulatory compliance, and cyber security. They can participate in risk assessment exercises, collaborate with stakeholders to develop risk mitigation strategies, and implement appropriate controls and monitoring mechanisms. They also possess strong analytical skills to assess the potential impact of risks, prioritize mitigation efforts, and propose improvements to risk management processes.

Advanced competence definition

Advanced-level professionals have comprehensive knowledge of risk management methodologies, industry regulations, and emerging risks in procurement and can lead procurement risk assessment initiatives, collaborating with cross-functional teams to identify and evaluate risks, develop comprehensive risk management frameworks, and implement risk mitigation strategies. They also actively monitor risk indicators, evaluate risk trends, and proactively identify potential risks to the procurement function. Additionally, we have found they provide guidance and training to internal stakeholders on procurement risk management, establish risk monitoring mechanisms, and drive continuous improvement in procurement risk mitigation processes.