Significance of a Risk Register for Procurement:
A risk register is a crucial tool for procurement as it allows the procurement team to
identify and manage risks associated with the sourcing of goods and services. By creating a risk
register, the procurement team can anticipate potential risks, assess their impact and probability
of occurrence, and develop appropriate response strategies. This enables the team to proactively
manage risks, minimize their impact, and ensure the successful delivery of goods and services.
Additionally, a risk register promotes transparency and accountability as it assigns responsibility
for each identified risk to a specific team member. Overall, a risk register is essential for
effective procurement risk management and contributes to the success of procurement activities.
Risk Register
R I
P
O
I R
A o
R
Inadequate supplier
qualifications
Medium High
Develop a supplier
qualification process
Category Manager
Limited competition for
specialized services
High High
Increase supplier search to
other regions
Sourcing Specialist
Supplier capacity limitations Low High
Include capacity assessment
in supplier selection process
Category Manager
Contractual obligations not
being met
Medium High
Develop a contract
compliance monitoring
Contract Specialist
Incomplete or inaccurate
specifications
High Medium
Develop a formal review
process for specifications
Category Manager
Inadequate supplier risk
management
Medium High
Develop a supplier risk
management program
Procurement Manager
Inadequate communication
with stakeholders
Low Medium
Develop a stakeholder
communication plan
Procurement Manager
Supplier insolvency or
bankruptcy
Low High
Develop a supplier risk
mitigation plan
Procurement Manager
