Specialist procurement recruitment agencies seeking talent for vacant procurement and supply chain jobs may prepare candidates for formal interview by asking a killer question: how would you mitigate procurement risks?
The tech news outlet, TechRepublic, outlines four responses to this query.
But first, what are the risks?
Some are minor, but the more significant ones can be expensive and time-consuming to rectify if they arise.
- Vaguely formulated business requirements
- Sub-optimal vendor capabilities
- Neglected compliance considerations
- Insufficient financial resources
- Undetected cybersecurity weaknesses, including data theft and privacy breaches
- Too little human capital
- Effects of unforeseen natural disasters
- Legal liabilities
- Operational inefficiencies
- Vendor volatility
Candidates for procurement jobs should be able to use four solutions:
Speak to a risk management specialist:discussions with these experts, along with key personnel from other departments in the business, can help thrash out background risk issues.
Risks often affect procurement even though originating outside the function.
Procurement pros may lack the skillset needed to rectify the problems that can arise, making collaboration with other colleagues vital.
Meticulously analyse each risk:once identified, each risk must be weighed for potential impact, probability of occurrence, likely frequency and severity.
Draw on the knowledge of other stakeholders to help in this process.
Be clear about optimal responses:risk managers have the know-how to identify the optimal remedies and timing to cope with each risk in the event of them ‘going live.’
It’s best to work through these scenarios before they arise, as some will need rapid action while others require a more enduring, evenly-paced response.
Put effective insurance in place:while not all risks are insurable, some are. So, it’s crucial to discuss specific procurement-related risks with an informed insurance broker and ensure that you get, in writing, an inventory of what is and what isn’t covered by the policy offered.