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MANAGING VENDOR RISK WHAT IS THE ROLE OF PROCUREMENT?



What is the role of procurement in managing vendor risks?



Supply chain disruptions, increasingly sophisticated cybersecurity attacks and
more aggressive regulatory controls over the past decade have brought increased
attention to the role of procurement in facilitating vendor risk management. For
most organizations, there is an implicit understanding that procurement has a
responsibility for helping to manage vendor risk. However, from an operational
perspective, the nature and purpose of this role is often either poorly defined
or misunderstood.

At the most fundamental level, procurement departments create business value by
helping to obtain goods and services in response to internal needs at the right
price, from the right source, at the right specifications, in the right quantity
for delivery at the right time. The intelligent management of risk is essential
for optimizing each of these value drivers in today’s business environment. This
report provides a framework consisting of eight key topics that will help you
define the role your procurement department can play in proactively managing
vendor risk to enhance the strategic value that procurement creates for the
enterprise.





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