Course Introduction :
Procurement is a strategic function that goes beyond merely buying goods and services: it’s a source of risk if not managed properly. In today’s global and regulated environment, procurement teams must navigate financial, legal, operational, and reputational risks. Moreover, compliance — whether with company policy, local regulation, or international standards — is essential to protect the organization and its suppliers.
This five-day course equips participants with practical tools and frameworks to identify, assess, mitigate, and monitor procurement risks, while embedding a compliance culture in procurement operations. Through a mix of theory, case studies, group exercises, and real-world examples, attendees will leave ready to implement risk management practices tailored to their organization’s context.
General Objectives
By the end of the training, participants will be able to:
- Understand the full spectrum of risks in the procurement lifecycle.
- Apply structured methods to identify and assess procurement risks.
- Design and implement mitigation strategies for supplier, contractual, and compliance risks.
- Establish monitoring and control mechanisms (e.g., KPIs, early-warning systems).
- Build a culture of compliance and risk awareness within the procurement organization.
Course Outline :
Day 1: Foundations & Risk Landscape
- Welcome & course overview
- Why risk management matters in procurement
- Definitions: risk, risk appetite, risk categories
- Procurement risk framework (drawing on ISO 31000 principles)
- Key types of procurement risk: financial, operational, reputational, compliance
- Case study: high-profile procurement failure
Exercise: Risk-identification workshop (brainstorming + risk register draft)
Day 2: Risk Assessment & Prioritization
- Techniques for identifying risks (workshops, stakeholder interviews, SWOT, PESTEL)
- Risk mapping: risk registers,
- Qualitative vs quantitative risk assessment
- Likelihood and impact scoring (risk matrix)
- Scenario planning & sensitivity analysis
Exercise: Using a real or simulated procurement scenario, participants build a risk matrix and prioritize top risks.
Day 3: Mitigation Strategies & Supplier Risk
- Supplier risk management: assessing supplier financial health, reliability, ESG risks
- Due diligence: background checks, third-party risk frameworks
- Risk response strategies: avoid, mitigate, transfer,
- Contract clauses to manage risk: indemnities, liability, force majeure
- Insurance, Guarantees, & other risk transfer tools
Exercise: Draft risk mitigation plans for a supplier with identified risks.
Day 4: Compliance & Monitoring
- Legal and regulatory dimension: anti-corruption, bribery, contract law,
- Ethical procurement: code of conduct, conflict of interest
- Monitoring procurement risk: key risk indicators (KRIs)
- Control mechanisms: internal controls, audits, early-warning systems
- Technology for risk monitoring: dashboards and reporting tools
Exercise: Design a sample compliance dashboard + define 3 KRIs relevant to the company.
Day 5: Crisis Management + Culture & Integration
- Developing contingency plans: continuity, disruption response, recovery strategies
- Contract breach handling & dispute resolution
- Embedding risk management into procurement processes
- Promoting a risk-aware culture: stakeholder engagement, training, communication
- Change management: how to roll out risk-compliance processes in your organization
Final Exercise / Simulation: Role-play a procurement disruption (e.g., supplier failure, corruption allegation) and run through risk response, communication, and recovery.