Risk management is one of the core tenants of procurement. Perhaps more importantly than just prioritizing this task, is gaining a stronger understanding of the strategies and tactics procurement can use to drive value through risk mitigation and build processes that truly support their efforts.
Whether you’re looking to protect your business from supply chain disruptions caused by geopolitical conflict or you want to have a backup plan in the event of a natural disaster, the steps you take to build out your risk management plan can make all the difference.
We’ve gathered some of the most insightful episodes of Art of Procurement so you can hear from global experts as they offer you advice on mitigating risk within your procurement function. See which one best applies to your concerns and get listening!
Episode 603: From C-Suite Priority to Procurement Strategy: Managing Risk at Scale
“Getting visibility into the n-tier is the silver bullet that makes procurement every organization’s hero or heroine because everything happens in the supply chain.”
When you think about risk management, who do you picture in charge of those tasks? Legal? IT? In reality, procurement plays a significant role in risk reduction. Unfortunately, we still have a ways to go in getting executives to recognize that.
In this episode, SAP’s Gordon Donovan, Global Market Research Director, Procurement and External Workforce at SAP, and Matthew Montgomery, Solution Management Director, Supplier Lifecycle & Third Party Risk Management at SAP, answer your questions about procurement’s role in risk management and highlight the skills and technology needed to support those efforts.
Episode 325: How to Identify & Mitigate Risk with a Category Continuity Plan
“This is where you, as a procurement professional, have the opportunity to step up and take the lead. In a crisis, no one has all the answers. By being as prepared as possible, with your category continuity plan in hand, you will be well placed to turn your risk response into a competitive advantage.”
Of the many responsibilities procurement has, some may seem contradictory to each other–for example, limiting risk and remaining agile. However, the proper continuity plan, in and of itself, can ensure you mitigate risk in the face of disruptions.
In this episode, AOP Founder Philip Ideson goes through the steps you should follow to create your continuity plan, the power of combining chain mapping and scenario planning, and the tools that help identify points of failure.
Episode 197: Risk Mitigation Strategies for Single & Sole Source Suppliers
“[It all] goes back to having that strategic relationship, that partnership, in place with a sole supplier and letting them have a seat at the table. That opens up doors to innovating collaboratively…and the opportunity to have a nice synergy together between both companies for equal share.”
Whether they enjoy a monopolistic position or your business chooses to rely on them, there’s always some risk that comes with sole source suppliers.
In this episode, Ted Olshefski, former Director of Direct Procurement at Panasonic and current Vice President of Shared Services Procurement at Valley Bank, offers a few strategies for reducing risk when working with sole sourced suppliers as well as factors you should consider when building those strategies from the ground up.
Episode 168: Building Risk Tolerance without Losing Urgency
“If a company doesn’t have a risk management plan, then that is an urgent matter that procurement must take up and put something in place as a protection for the organization.”
When procurement considers the various factors that go into risk management, we tend to focus on the risk itself, rather than the decisions and conditions that lead to that risk in the first place. That’s where we may be missing an opportunity to create value.
In this episode, Margaret Gilbert, Director of Corporate Contracts Management, and Anthony English, Information Technology Specialist at Westpac, explain the importance of focusing on risk response, the connection between business objectives and productive risk management, and ways you can vet supplier business continuity.
Episode 38: How To Integrate The Identification Of Risk Into The Sourcing Process
“What is important is that you have a consistent process that determines whether a supplier should be monitored for certain risks, and what those risks are.”
To truly mitigate risk within your supply chain, you can't wait until you've arrived at contract negotiations or later steps in your sourcing processes. You need to consider a supplier’s risk factors from the beginning.
In this episode, Philip Ideson answers a pressing audience question and defines why risk identification needs to begin early in the sourcing process and the key factors that indicate you should monitor risk related to certain suppliers.
Episode 29: The 8 Supplier Risk Factors You Should Be Protecting Your Company From
“The identification, mitigation, and management of supplier risks will become a key way that procurement adds value going forward.”
No matter who you serve or what products you purchase, there can always be a dark cloud looming in the distance, ready to cause disruptions. The real question is where the risk will stem from.
In this episode, Philip Ideson highlights the wide variety of supplier risk factors you need to watch out–and prepare–for as your organization builds strategies for smooth (as possible) sailing.
