Supplier risk assessment and mitigation

Supplier risk assessment and mitigation involves identifying, assessing, and mitigating risks associated with suppliers to ensure continuity of supply, quality, and operational resilience. It encompasses activities such as risk identification, risk analysis, risk mitigation strategies, and supplier risk monitoring.

Beginner competence definition

Beginners have a basic understanding of supplier risk management principles and can support more experienced professionals in data collection and risk assessment tasks. They can assist in organizing supplier 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 supplier risks, conduct comprehensive risk assessments, and develop risk mitigation strategies. They can participate in risk mitigation initiatives, collaborate with suppliers to address identified risks, and contribute to the development of supplier risk management frameworks. They also possess strong analytical skills to evaluate supplier financial stability, operational resilience, and potential disruptions to the supply chain.

Advanced competence definition

Advanced-level professionals have extensive knowledge of supplier risk management methodologies, industry best practices, and emerging risks in the supply chain, and can lead supplier risk assessment initiatives, collaborating with stakeholders to define risk criteria, conduct risk evaluations, and develop comprehensive risk mitigation plans. They proactively monitor supplier risk indicators, such as financial health, geopolitical risks, and operational vulnerabilities, and implement appropriate controls and contingency plans. They also collaborate with suppliers to implement risk mitigation strategies, establish supplier risk management programs, and drive supplier resilience and business continuity efforts. Additionally, we have found they provide guidance and support to internal stakeholders on supplier risk-related matters, ensuring that supplier risk assessments are integrated into procurement processes and supplier relationships.