Successful risk management for your purchasing department

Fundamentals of risk management

• Probability of occurrence & impact.
• Internal risk management vs. supplier risk management.
• Risk screening and strategies for suppliers.
• Dealing with external influences, e.g. price fluctuations, environmental influences, economic crises.

Risk types incl. risk factors and hazards

• Identification of risk types (liquidity problems, performance-related factors, logistics, currency, technology, etc.).
• Risk assessment of your suppliers according to impact and probability of occurrence.
• Optimal risk prevention process.
• Recognize and evaluate risks in the supply chain (risk identification).
• Optimal use of leading indicators.
• Continuous risk tracking.

Hedging risks - possible alternative courses of action

• Global & specific measures for your supplier portfolio.
• 2nd source.
• Contractual protection & insurance.
• Control supply chains with inventories.
• Standardization of products.
• Protection against financial risks.

The path to risk-oriented purchasing

• Use of simple and effective tools.
• Continuous risk tracking.
• Risk review and revalidation.
• Establish escalation processes in purchasing and the company.