Procurement Risk Management Definition
When it comes to procurement, risk management is the process of identifying, assessing, and mitigating risks that could impact the successful completion of a procurement project. By proactively managing risks, organizations can avoid or minimize potential negative impacts on their procurements.
There are a number of different risks that can impact a procurement project, including:
-Political risks: Changes in government policies or instability in governments can impact the success of a procurement project.
-Economic risks: Fluctuations in currency exchange rates or interest rates can impact the cost of a procurement project.
-Social risks: Social unrest or changes in social norms can impact the availability of goods or services required for a procurement project.
-Technological risks: New technologies can obsolesce existing technologies, making it necessary to rework a procurement project.
