Sourcing Risk Management is a set of strategies and processes designed to identify, assess, reduce, and report on risks associated with sourcing decisions. It encompasses a wide range of activities including contract management, supplier analysis, risk identification, due diligence, price negotiation, performance monitoring, compliance management, and more. By banking on the proper implementation of sourcing risk management, businesses can be better prepared for inevitable changes in the marketplace and make cost-effective decisions that protect their bottom line.