Risk Management in Procurement

Risk management in procurement involves identifying and assessing potential issues that could disrupt the sourcing of goods or services. It aims to anticipate problems—like supplier failures, price fluctuations, or supply chain interruptions—and develop strategies to mitigate their impact. This process helps organizations ensure continuity, control costs, and maintain quality by proactively addressing uncertainties before they escalate into major setbacks. Essentially, it’s about safeguarding the procurement process to support the overall stability and success of the business.