Procurement Risk

Procurement risk refers to the potential problems or uncertainties that can affect the process of acquiring goods or services for an organization. These risks might include delays from suppliers, price fluctuations, quality issues, or supplier bankruptcy. Such risks can lead to increased costs, project delays, or compromised quality, impacting the organization’s operations and objectives. Effective procurement risk management involves identifying potential threats beforehand and taking steps to minimize their impact, ensuring that procurement processes are smooth, cost-efficient, and reliable.