Chapter 13 - Risk management in purchasing and supply...

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Unformatted text preview: Risk management in purchasing and supply purchasing Ch 13 OBJECTIVES OBJECTIVES Define risk Explain the relationship between Explain uncertainty and risk uncertainty Classify risks into four categories Identify and explain purchasing and Identify supply management risks supply Identify and explain the strategies to Identify reduce or eliminate purchasing and supply management risks management Question 1 Question Define the terms certainty, uncertainty and Define risk and explain the relationship between uncertainty and risk uncertainty Page 213 – 214 Page Question 2 Question Briefly explain the four categories of risk in Briefly purchasing and supply management purchasing Page 214 – 217 Page Core business risks Core Incidental business risks Incidental Operational risks Operational External downside risks External Question 3 Question Identify and explain purchasing and supply management risks Page 217 – 221 Page Wrong or inadequate specifications Wrong Requisitions received late Requisitions Internal and / or external fraud Internal Lack of suppliers Lack Pricing Pricing Quality Quality Continued availability Continued Quantities and lead times Quantities technological changes technological Agreed procedures for inspections and returns to supplier Agreed Internal errors Internal Information systems and processes Information Disasters Disasters Question 4 Question Identify and explain the strategies to deal Identify with or eliminate purchasing and supply risks risks Page 225 - 229 Page Risk control alternatives Risk Proactive purchasing and supply management management ...
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