4 risk management risk management involves the

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4. Risk management Risk management involves the systematic identification, analysis, treatment and, where possible, the implementation of appropriate risk-mitigation strategies. It is integral to efficiency and effectiveness to proactively identify, evaluate, and manage risks arising out of procurement related activities. The risks BSBMGT517 Manage operational plan Page 57
Procurement policy and procedures Simulated business: BBQfun associated with procurement activity must be managed in accordance with the organisation’s Risk Management Policy. 5. Responsible financial management The principle of responsible financial management must be applied to all procurement activities. Factors that must be considered include: the availability of funds within an existing approved budget staff approving the expenditure of funds strictly within their delegations in accordance with the delegations table on page and the completion of the Expenditure Payment Approval Form measures to contain costs of the procurement without compromising any procurement principles. 6. Procurement planning In order to achieve value for money, each procurement process must be well planned and conducted in accordance with the principles contained in this document and comply with all of the organisation’s policies and relevant legal and regulatory requirements. When planning appropriate procurement processes, consideration should be given to adopting an approach that: encourages competition ensures that rules do not operate to limit competition by discriminating against particular suppliers recognises any industry regulation and licensing requirements secures and maintains contractual and related documentation for the procurement which best protects the organisation complies with the summary of procurement delegations (on page 60). 7. Buy Australian made/support for Australian industry Employees who are involved in procurement activities must make a conscious effort to maximise opportunities for Australian manufacturers and suppliers to provide products where there is practicable and economic value. In making a value for money judgement between locally made and overseas-sourced goods, employees are to take into account: whole-of-life costs associated with the good or service that the initial purchase price may not be a reliable indicator of value the quality of locally made products the record of performance and delivery of local suppliers the flexibility, convenience and capacity of local suppliers for follow on orders the scope for improvements to the goods and ‘add-ons’ from local industry. 8. Pre-registered list of preferred suppliers BBQfun shall maintain a pre-registered list of preferred suppliers, following a request for expressions of interest and an evaluation of the submissions. Suppliers can request to be evaluated for inclusion on the existing pre-register list at any time.

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