Global Standard for Procurement and Supply

Current segment

Level: Managerial

Theme: Metrics & Measurement

Segment 8.4 Managing Risks in Procurement and Supply

Segment 8.4 Managing Risks in Procurement and Supply

Knowledge: Will know and understand Capabilities: Will be able to

The development of risk evaluation tools including risk assessments, registers and other tools and assessing contractual risks for procurements of goods or services

Create risk assessments, registers or other risk evaluation tools and agree actions to mitigate risks with suppliers and other stakeholders

Measuring risks in procurement and supply such as;

  • Quality
  • Cost
  • Resilience
  • Sustainability
  • Achievement of timescales

Compile risk assessments, registers or other risk evaluation tools for projects and agree actions with suppliers and other stakeholders to allocate or share risks to avoid claims, variations or disruption

Collating and analysing data and statistics on risks in procurement and supply and actions to mitigate their impact

Compile qualitative and quantitative data to measure risks in the procurement of goods or services and take actions to reduce the probability and impact of the risks

Monitoring and control in procurement and supply

Use monitoring and control processes or systems to manage risk in procurement and supply

The monitoring and control of sustainability in procurement and supply

Devise and monitor Key Performance Indicators (KPIs) for sustainability with suppliers and take appropriate actions to ensure delivery to agreed standards

Market factors that can impact on risks such as;

  • Industry dynamics
  • Competitiveness
  • Pricing behaviour
  • Technology drivers

Research and use data on market change to inform decision making and mitigate risk

Knowledge: Will know and understand

The development of risk evaluation tools including risk assessments, registers and other tools and assessing contractual risks for procurements of goods or services

Capabilities: Will be able to

Create risk assessments, registers or other risk evaluation tools and agree actions to mitigate risks with suppliers and other stakeholders

Knowledge: Will know and understand

Measuring risks in procurement and supply such as;

  • Quality
  • Cost
  • Resilience
  • Sustainability
  • Achievement of timescales
Capabilities: Will be able to

Compile risk assessments, registers or other risk evaluation tools for projects and agree actions with suppliers and other stakeholders to allocate or share risks to avoid claims, variations or disruption

Knowledge: Will know and understand

Collating and analysing data and statistics on risks in procurement and supply and actions to mitigate their impact

Capabilities: Will be able to

Compile qualitative and quantitative data to measure risks in the procurement of goods or services and take actions to reduce the probability and impact of the risks

Knowledge: Will know and understand

Monitoring and control in procurement and supply

Capabilities: Will be able to

Use monitoring and control processes or systems to manage risk in procurement and supply

Knowledge: Will know and understand

The monitoring and control of sustainability in procurement and supply

Capabilities: Will be able to

Devise and monitor Key Performance Indicators (KPIs) for sustainability with suppliers and take appropriate actions to ensure delivery to agreed standards

Knowledge: Will know and understand

Market factors that can impact on risks such as;

  • Industry dynamics
  • Competitiveness
  • Pricing behaviour
  • Technology drivers
Capabilities: Will be able to

Research and use data on market change to inform decision making and mitigate risk

This segment was last updated on: 4th April 2017

The Global Standard for Procurement and Supply structure

Released in 2014 the Standard is a competency framework of procurement and supply skills, knowledge and capabilities that can be used by individuals and organisations to identity training and professional development needs at varying levels of competency.

The Global Standard for Procurement and Supply structure
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