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.