Risk management is really important topic but very often underestimated.
Honestly very few companies in my practice are having methodological approach to risk management…
I agree, you don’t sound like a superhero when you are talking about the risks in Procurement and Supply Chain management… It is of course much more fun to discuss about savings and improvements. But concentrating on the growth and development without consideration on risk can cause a lot of problems.
Risk management is very often left outside the focus. Honestly very few companies in my practice are having methodological approach to risk management, and even less companies have written procedures about it.
For this reason I always include Risk Management in every education for new comers and for the experienced Procurement professionals.
Lower costs often lead to Higher risk!
My general perception of Procurement and Supply Chain management is very much connected to Risk management. Our job is the constant balance between optimizing the COSTS and lowering the RISKS.
So remember to consider Risk management when hunting for savings next time!
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Article by Robert Freeman
Procurement expert and coach at Future Procurement
You can learn more about Procurement and Supply Chain Management at our web-site www.futureprocurement.net