Risk management

Risk management involves identifying, assessing, and mitigating risks associated with procurement activities. It encompasses activities such as risk identification, risk analysis, development of risk mitigation strategies, and the implementation of controls to minimize the impact of potential risks on procurement operations.

Beginner competence definition

A beginner-level professional has a basic understanding of common procurement risks and their potential impact. They can assist in gathering and organizing risk-related data, conducting basic risk assessments, and supporting the development of risk mitigation plans. They require guidance from more experienced professionals in conducting in-depth risk analysis and implementing risk mitigation strategies.

Intermediate competence definition

An intermediate-level professional is able to identify and analyze procurement risks across various categories, such as supply chain disruptions, supplier financial stability, legal compliance, and reputational risks. They actively participate in risk assessment exercises, develop risk mitigation plans, and implement appropriate controls and monitoring mechanisms. They also collaborate with cross-functional teams to develop contingency plans and ensure business continuity, and possess strong analytical skills to assess the potential impact of risks and propose mitigation strategies.

Advanced competence definition

An advanced-level professional has comprehensive knowledge of risk management methodologies, industry regulations, and emerging risks in procurement. They are able to proactively identify and assess risks throughout the procurement lifecycle and develop comprehensive risk management frameworks. They lead risk assessment workshops, facilitate risk mitigation strategies, and implement robust controls to minimize risks. They also actively monitor risk indicators, identify early warning signs, and develop contingency plans to address potential disruptions. In our experience, we have found they collaborate with stakeholders to embed risk management into procurement processes and drive a culture of risk awareness and mitigation within the organization.