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The sudden onset of the Covid-19 pandemic had supply chain and procurement firms endure a changed and difficult business environment. As these struggled to handle, Procurement Risk Management acquired the dimensions of a critical skill to have.
Many firms were caught unawares by the rapid shift to online sales. The business, itself, was also saddled with the responsibility of planning, sourcing, and administration of critical contracts, with the additional challenge of ensuring the safety of workers, customers, and contractors on site. Today, businesses are entering a recovery and stabilization stage as they are, again, in a position where they can predict the future.
What can we learn from this experience, and how can we deal with unforeseen or perhaps expected dangers that may come our way? The solution lies in efficient Procurement Risk Management.
What is Procurement Risk Management?
Every purchase in business comes with a slew of risks. There are challenges with quality, vendor dependability, client expectations, cost, and delivery, to name a few. They may be general or industry-specific. When there are so many variables, the risk of failure is significant. Procurement risk management, therefore, is the process of identifying and minimizing internal and external risks to your supply chain.
What does procurement risk mean?
Here are some of the most common procurement risk management concerns to watch for:
1. Inadequate internal needs analysis
2. Poor vendor selection
3. Disorganized vendor management
4. Non-compliance and crude contract management processes
5. Delays in procurement
Why is risk management important in procurement?
You might have heard the adage: “What you don’t know can’t hurt you.” But, in procurement, it does not always pan out this way. In fact, ignorance, even the willful denial that some companies indulge in, can create significant problems for business. Strategic procurement and streamlining of the process are the practices needed for mitigating the impact of poor procurement risk management, whatever might have been its original cause. You can get our expert help by incorporating SlideTeam’s content-ready PowerPoint templates.
These Procurement Risk Management templates can provide you with the following six benefits:
• Keep track of every dollar you spend and ensure that you get the most value
• Choose suppliers in a much better manner and ensure a healthy relationship
• Make sustainability a component of your procurement practice by discussing critical situations with your suppliers
• Stay well-informed of any risks
• Analyze spending patterns and create reports
• Deliver vital insights that you need to manage risks and take your procurement efforts to the next level
Procurement Risk Management Templates from SlideTeam
Now that you know how using procurement risk management templates can help you meet your business challenges with ease and expertise, it’s time to explore the templates so you can get started!
Template 1: Risk Management Approach Template
Looking to get your procurement process in order? Check out this PPT template highlighting the basic approach to identifying risks and mitigation practices. This versatile template can be used to create awareness to streamline your procurement risk management process. This content-ready slide can be an addition to your arsenal of procurement tools.
Template 2: PPT Slide for Integrated View of Risk
Use this slide to capture a holistic view of risks in your procurement system. It highlights regulatory compliance and internal and external ecosystems. You may get a full picture of all the risks at once with this 3D representation, which uses hues to indicate levels. Isn't it convenient? Download now.
Template 3: Supplier Risk Events PPT Template
Are you worried about risky events that tend to turn the plans of your suppliers on their heads? Be prepared and ready for any such eventuality with this handy PPT slide. This PowerPoint slide is essential for anyone involved in this procurement process. It points out risks that suppliers might not deliver the promised material, and resort to unacceptable practices that cause outsourcing failure. It will be a great help to prepare for risks that the supplier might face, and hit your business. Grab it now!
Template 4: Procurement Risk Management Steps PowerPoint Slide
This procurement risk management template is just what you need to keep your team on track. It provides an easy-to-understand guide to the nine critical steps in procurement risk management, so you can be sure that nothing gets overlooked. Reliable and comprehensive, this template will help you run a tight ship and avoid unnecessary stress. Download it today!
Template 5: Risk Management Process PPT Sample
If you want to follow a workable risk management process, look no further than this framework. It gives an overview of the process of risk management that includes:
● Identification of critical categories & suppliers
● Risk Evaluation
● Business Continuity Plans
● Continuity Monitoring
This comprehensive framework will ensure you get the Procurement Risk Management exercise on your part on the right track.
Template 6: Procurement Process Overview Template
Getting a hang of Procurement Risk Management is essential to ensuring that you can run a snag-free business. By using this template, you can quickly identify, evaluate, and mitigate risks before they happen. This slide provides you with an overview of the procurement process through a circular design, and it will help you save time and money. This is due to the template’s ability to help you quickly and correctly identify the kinds of procurement risk management that you need to handle; it is better you get on to the job as quickly as possible. Download this unique, circular piece of template to help apply techniques of procurement risk management now.
Template 7: Identification of Critical Categories & Suppliers
The first step in any procurement management process is identifying the risks involved. This Procurement Risk Management Template will help you do just that. It comes with a small funnel design, pyramid diagram, and a matrix to help you identify critical categories and suppliers, their profitability impact, and supply chain complexity. By getting this slide now, you will provide enough information to your team to make informed decisions while dealing with procurement risk management and avoid costly mistakes.
Template 8: Risk Evaluation Template
Explaining the process of vendor selection as part of your procurement risk management process becomes much easier when you incorporate this handy slide from SlideTeam for guiding your workforce. It maps out three significant functions: supply chain mapping, supplier risk analysis, and disruption monitoring. You can evaluate the risks and key outputs through this framework.
Template 9: Business Continuity Plan Template
Ensure a successful business continuity plan by using this informative PPT slide that describes the management of vendors as part of the procurement risk management process. This slide will assist you in identifying new or alternative sourcing locations and suppliers, based on the risk profile of each supplier. The use of this template for procurement risk management will help you mitigate any risks associated with your procurement process. Don't wait any longer, download this template!
Template 10: Continuous Monitoring PPT Slide
Deploy this slide to ace the fourth step of the process. Determine how you will monitor and assess your supply chain operations in order to identify potential dangers. You can enhance your visibility and decrease ‘time to respond’ and ‘time to recover' if there are any supply disruptions, with the use of this template for Procurement Risk Management. Expect immediate results with this template, as the speed of management’s positive intervention increases, to good results.
Template 11: Risk Management Program Challenges Template
This slide is perfect to use if you want to elaborate on the challenges of establishing a risk management program, specifically in terms of procurement risk management. It lets you provide information in a simple format and is helpful for decision-making. The bars are divided into two colors; green denotes the percentage of critical challenges while black indicates the major challenge.
Template 12: Mitigating Risks PowerPoint Slide
Consider this PPT slide for mitigating supplier risk and projecting the supply chain. It emphasizes four aspects of doing so: certify, monitor, analyze, and mitigate. These are the key elements of any risk planning process. Here you will find a detailed description of each of these aspects of procurement risk management for better comprehension of each.
Template 13: Conclusion and Recommendation Slide
Use this conclusion and recommendation slide to summarize key takeaways. It gives basic guidelines that can help you develop creative solutions, and you may also add your findings and ideas to it. Get a copy now!
While it would be wonderful to simply be able to erase your procurement risks and move on, the fact is that risk is a permanent and ever-changing hazard to your procurement staff and company as a whole. You must maintain continuous, consistent risk monitoring to minimize your risk exposure.
Handling procurement risk management is a breeze
After reading this informative blog, you are now aware of how you can handle procurement risk management as part of your business. You can make a move in this direction with the download of this stunning presentation with informative slides on Procurement Risk Management. All these slides are content-ready, and easy to edit and showcase the latest and proven industry research.
You can contact our Design Services team if you are looking for a more customized presentation for your business needs.
P.S. If you want to expedite the global trade for your business, here is a handy guide with shipping templates.
FAQs on Procurement Risk Management
How do you mitigate risks in procurement?
The following are the most critical strategic measures for reducing risk:
- Visualize the design and workflow structure of your supply chains.
- Automate aggressively
- Create your own specific metric for evaluating supplier performance.
- Make a plan for managing supply chain risk; well-prepared is half the battle won
- Develop a strong vendor sourcing plan.
What is risk assessment in procurement?
To do a risk assessment, you must first identify possible risks. Then, evaluate how severe each one could be. Once you have done that, devise ways to lessen the chance of them happening and decide who will be in charge of each recorded risk. This is a specialized job that requires rigor and some level of effort. Make sure that the workflow in this is perfect and smooth. If you get this wrong, there could be long-term repercussions.
What are the five main categories of risk?
The following are some primary types. These are governance risks, substantial corporate risks, board-approval concerns, operational challenges, and emerging hazards. These categories may be applied to every business, regardless of its sector. A way to understand governance risk is that you have to follow all rules and put a compliance mechanism in place. Compliance, in itself, means focusing on adhering to policies and regulations. Governance is the umbrella term that refers to the approach any business takes to risk, and even ethics.
Why do you need to get into procurement risk management in the first place?
There is indeed a need for procurement risk management because of these three reasons:
- This relates to the businesses failing to fully analyze the internal needs of their own industry or trade; it could happen due to unrealistic timeframes. A risk cover, then, becomes a dire need.
- Poor contract management also derails a lot of businesses and they end up on the wrong side of the law; even missed sales opportunities can result.
- It is also needed as companies that focus on manual processes need to ensure that they are up to speed with technology.
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