An Introduction to Procurement Risk Management

Procurement risk management has emerged as a crucial area for businesses in the recent years. Traditionally much of the attention was on managing risks related to commodity prices, currency rates, quality non-conformance etc. However, rising incidence of disruptions like Japanese earthquake, Thailand Floods, European horse meat contamination etc. has thrown light into the other vulnerabilities of the supply chain. According to Business Continuity Institute?s ?Supply Chain Resilience 2013? Study, only about twenty-five percent of the companies have organization-wide visibility into supply disruptions. The rest of the seventy-five percent reported no or limited initiatives on this front, indicating unpreparedness and serious supply continuity concerns in the event of such disruptions.