After a long gap, I found time today to write in my blog about Procurement Risks.
So, What is risk?
The Random House Unabridged Dictionary defines risk as, “The exposure to the chance of injury or loss; a hazard or dangerous chance.”
In any procurement function there are these elements of risks; the auditors always pick them up!
Why we only realize when auditors questioning the credibility of a procurement transaction? Why we are unable to identify these risks prior to its occurrence?
The answers to these questions are either we never had a mechanism to identify and address the risks or we never had the required tools to address the risks.
I thought to finish this subject by start writing about few of the risks, and I thought I could provide a helicopter view of this subject by writing about few risks and say “That is all folks!”, but once I approached the core of this posting I realized how difficult it is to explain the depth of this subject in one post.
BTW, the procurement risks can be classified under following categories (get ready to scroll and scroll);
Process Risks
Information Risks
