Manage procurement risk

In procurement, risk may be defined as the chance or opportunity for something to go wrong or other problems to arise.  The main risk areas to be considered include:

  • The goods or services required are not delivered on time, to budget or of an appropriate quality
  • There may be risks associated with financial impropriety, fraud and waste
  • Inadequate planning caused by something coming out of the blue – negating best efforts to plan procurement activity e.g. award of ESIF bid funding
  • Missing an opportunity to do something better and more cost effectively due to inadequate timescales or an error of judgement.

For further information on risk management and why its important please see A Guide to Managing Risk and Assessment of Risk section.