Risk Management in Purchasing and Supply Management
Purchasing teams use targeted strategies to reduce supply chain disruptions. This concept guides managers through core risk-management attributes and proactive practices, stressing a measurement culture that monitors risks and drives timely action to build resilience (Schoenherr et al., 2023).
Technique Overview
Risk Management in Purchasing and Supply Management Definition
Generally, risk can be defined as the probability of an unwanted outcome happening. Risk management involves three key activities: risk analysis, risk assessment and risk mitigation (CIPS: Risk Management in Purchasing and Supply Management). In purchasing, contemporary practice extends this to sustainability-related risks across multiple tiers, requiring visibility beyond direct suppliers and coordinated mitigation with sub-tiers (Kähkönen et al., 2023).
Risk Management in Purchasing and Supply Management Description *
* The full technique overview will be available soon. Contact us to register your interest in our business management platform, and learn all about Risk Management in Purchasing and Supply Management.
Business Evidence
Strengths, weaknesses and examples of Risk Management in Purchasing and Supply Management *
* The business evidence section is for premium members only. Please contact us about accessing the Business Evidence.
Business Application
Implementation, success factors and measures of Risk Management in Purchasing and Supply Management *
* The business application section is for premium members only. Please contact us about accessing the Business application.
Professional Tools
Risk Management in Purchasing and Supply Management videos and downloads *
* The professional tools section is for premium members only. Please contact us about accessing the professional tools.
Further Reading
Risk Management in Purchasing and Supply Management web and print resources *
Risk Management in Purchasing and Supply Management references (4 of up to 20) *
- Burkhart, D. and Bode, C. (2024) ‘On supplier resilience: How supplier performance, disruption frequency, and disruption duration are interrelated’, Journal of Purchasing and Supply Management, 30(3), 100921. Available at: https://doi.org/10.1016/j.pursup.2024.100921
- Chopra, S. and Sodhi, M.S. (2004) Managing Risk to Avoid Supply-chain Breakdown. MIT Sloan Management Review, Vol. 46(1), pp. 53-61.
- Christopher, M. and Peck, H. (2004) ‘Building the resilient supply chain’, The International Journal of Logistics Management, 15(2), 1–14. Available at: https://doi.org/10.1108/09574090410700275
- CIPS: Risk Management in Purchasing and Supply Management.
* The further reading section is for premium members only. Please contact us about accessing the further reading.
Learn more about KnowledgeBrief Manage and how you can equip yourself with the knowledge to succeed on Risk Management in Purchasing and Supply Management and hundreds of other essential business management techniques