Procurement Risk Management Training Course

Course Overview

Learning Objectives

• Analyze the nature, sources, and consequences of procurement risk and its link to organizational objectives on Day 1.
• Apply recognized risk management principles, including ISO 31000 and the COSO enterprise risk management framework, to the procurement function.
• Identify risks at each stage of the procurement lifecycle, from planning and specification to contract closure and payment.
• Assess procurement risks using structured likelihood and impact criteria and prioritize them using risk matrices and heat maps.
• Develop a procurement risk register with clear risk descriptions, owners, controls, and mitigation actions.
• Evaluate supplier risk across financial, operational, compliance, cybersecurity, geopolitical, and sustainability dimensions.
• Design supplier due diligence and ongoing monitoring processes for critical and high-risk suppliers.
• Evaluate contract risk allocation and apply mitigation tools, including contract clauses, performance bonds, guarantees, insurance, and liquidated damages.
• Identify fraud, corruption, conflict of interest, bid rigging, and collusion risks and implement preventive and detective controls.
• Develop supply continuity and contingency plans for critical goods and services, including dual sourcing and inventory buffers.
• Implement key risk indicators and reporting mechanisms to monitor procurement risk exposure.
• Design a procurement risk management implementation plan for the participant's organization by the end of Day 5.

Who Should Attend

Learning Outcomes

• By the end of the course, participants will be able to:
• Explain the main categories of procurement risk and how they affect organizational performance.
• Apply a structured risk management process to procurement activities.
• Identify risks at each stage of a procurement from planning through contract closure.
• Assess and rank procurement risks consistently using likelihood and impact criteria.
• Build and maintain a practical procurement risk register.
• Conduct a supplier risk assessment and decide the level of due diligence required.
• Monitor critical suppliers using financial, performance, and compliance indicators.
• Review contract terms to ensure balanced risk allocation and adequate protection.
• Recognize red flags of fraud, corruption, and collusion and apply appropriate controls.
• Prepare continuity and contingency plans for critical supplies and services.
• Define key risk indicators and report procurement risk clearly to management.
• Present a practical plan to strengthen procurement risk management in their organization.

Course Outline