Ensure best procurement practices with our Procurement Risk Analysis Template, streamlining risks identification, analysis, mitigation, auditing, and ongoing management.
1
Identify potential procurement risks
2
Assign priority levels to each risk
3
Develop risk rating matrix
4
Analyze causes of risk and their impacts
5
Approval: Risk Analysis
6
Consider potential mitigation measures for each risk
7
Estimate the cost of risk mitigation measures
8
Approval: Procurement Manager for mitigation measures
9
Develop a risk management plan
10
Seek feedback from different stakeholders on the risk management plan
11
Incorporate feedback and revise the risk management plan
12
Approval: Procurement Director for final risk management plan
13
Implement the risk management plan
14
Monitor the effectiveness of risk management measures
15
Report on risk management progress and any potential new risks
16
Approval: Procurement Analyst for risk management report
17
Revise risk management plan if necessary
18
Prepare and update risk register
19
Carry out a procurement risk audit
20
Approval: Procurement Auditor for risk audit report
Identify potential procurement risks
In this task, you will identify the potential risks associated with the procurement process. Consider factors such as supplier reliability, market volatility, and compliance issues. Think outside the box and brainstorm all the potential risks that could impact the procurement process.
Assign priority levels to each risk
Assigning priority levels to each risk will help you determine which risks require immediate attention and which can be managed later. Consider the impact and probability of each risk to assign an appropriate priority level.
1
High
2
Medium
3
Low
Develop risk rating matrix
A risk rating matrix will help you assess the severity of each risk based on its likelihood and impact. Use the matrix to categorize risks into different levels of severity, such as low, medium, or high risk.
Analyze causes of risk and their impacts
In this task, you will analyze the causes of each risk identified and evaluate their potential impacts on the procurement process. Understanding the root causes and impacts of each risk will help you develop effective mitigation measures.
Approval: Risk Analysis
Will be submitted for approval:
Develop risk rating matrix
Will be submitted
Consider potential mitigation measures for each risk
Think carefully about potential measures or actions that can be taken to mitigate each risk identified. These measures should help reduce the likelihood or impact of the risk. It's important to consider multiple and diverse mitigation options for each risk.
Estimate the cost of risk mitigation measures
Estimating the cost of implementing each mitigation measure will help you determine the financial feasibility and prioritize the mitigation measures based on cost-effectiveness. Consider factors such as resources required, external support, and potential savings or losses associated with each measure.
Approval: Procurement Manager for mitigation measures
Will be submitted for approval:
Consider potential mitigation measures for each risk
Will be submitted
Develop a risk management plan
Developing a risk management plan will provide a structured approach to managing and mitigating risks throughout the procurement process. The plan should outline the steps, responsibilities, and timelines for implementing mitigation measures and monitoring risks.
Seek feedback from different stakeholders on the risk management plan
It is important to seek feedback from different stakeholders involved in the procurement process on the risk management plan. Their insights and perspectives will help ensure that the plan is comprehensive, realistic, and aligned with organizational goals.
Incorporate feedback and revise the risk management plan
Review the feedback received from stakeholders and incorporate their suggestions into the risk management plan. Make necessary revisions to ensure that the plan addresses their concerns and is aligned with their expectations.
Approval: Procurement Director for final risk management plan
Will be submitted for approval:
Develop a risk management plan
Will be submitted
Seek feedback from different stakeholders on the risk management plan
Will be submitted
Incorporate feedback and revise the risk management plan
Will be submitted
Implement the risk management plan
Implementing the risk management plan involves executing the identified mitigation measures and monitoring risks according to the established timelines. Ensure proper communication, coordination, and allocation of resources to successfully implement the plan.
Monitor the effectiveness of risk management measures
Regularly monitor and evaluate the effectiveness of the implemented risk management measures. This will help you assess if the measures are mitigating the identified risks or if adjustments to the plan or additional measures are required.
Report on risk management progress and any potential new risks
Prepare regular reports on the progress of risk management activities, including updates on the implementation of mitigation measures and any new risks identified. These reports will provide insights to stakeholders and help them stay informed about the status of risk management efforts.
Approval: Procurement Analyst for risk management report
Will be submitted for approval:
Monitor the effectiveness of risk management measures
Will be submitted
Report on risk management progress and any potential new risks
Will be submitted
Revise risk management plan if necessary
Based on the feedback received and the evaluation of risk management effectiveness, revise the risk management plan as needed. Continuously assess and improve the plan to ensure its relevance and efficacy throughout the procurement process.
Prepare and update risk register
Maintain a risk register to document and track all identified risks, their priority levels, mitigation measures, and their progress. This register will serve as a reference for future risk management efforts and facilitate consistency and transparency in risk management.
Carry out a procurement risk audit
Conduct a procurement risk audit to assess the effectiveness of the risk management plan and identify any gaps or areas for improvement. The audit should review the implementation of mitigation measures, the accuracy of risk assessment, and adherence to the risk management plan.
Approval: Procurement Auditor for risk audit report
