Effective risk management in procurement involves identifying, assessing, and mitigating risks that could impact the supply chain. This includes risks related to supplier reliability, market fluctuations, and compliance issues.

Risk Mitigation Strategies

• Supplier Diversification: Avoid reliance on a single supplier to reduce risk.
• Regular Audits: Conduct audits to ensure compliance and identify potential issues early.
• Contingency Planning: Develop plans to address potential disruptions in the supply chain.