Competency Module: Advanced Risk Analysis

Description

Procurement leaders are responsible for mitigating risks for their departments. Although every procurement professional is involved in risk management, every entity ultimately relies on its procurement leaders to protect the entity when it enters into contracts for goods and services. Mitigation of risks begins even before the procurement cycle is initiated with a process known as risk analysis.

Risk analysis is a vital part of procurement that is often overlooked. The Supply Chain Management Review tells us that, “Risk management looks simple on the surface, but is a highly complex part of the organizational and procurement strategy. Controlling and mitigating the myriad of risks associated with business operations is one of the key pillars for success.” Risk analysis is critical and continuous, and risk should be evaluated and managed throughout the procurement process.

When considering a new initiative, it can be difficult for a procurement leader to determine a starting point for risk analysis. Who is involved? How can risks be identified from various stakeholders? Will a specific procurement solve a problem, or is there another root cause? How can strategies obtained from a risk analysis be implemented?

NIGP has recognized these challenges and created an in-depth course offering that walks procurement professionals through every step of the risk analysis process using reality-based procurement scenarios.  

NIGP’s Advanced Risk Analysis course is a scenario-based, 8-hour learning experience where students leave with the ability to:

• Anticipate risks and problems that can arise during the procurement process.
• Create and carry out an effective procurement risk management strategy plan.
• Conduct a peer review of a solicitation to find errors and omissions or make other suggestions to the document, answer supplier questions, and determine appropriate contract terms.
• Mitigate risk after contract award by ensuring that the people with appropriate approval authorities execute the contract, providing feedback to suppliers not awarded and handling protests and appeals.
• Minimize risk throughout the life of the contract by monitoring deliverables, conducting reviews and checks on contract performance, mitigating any recurrences of issues, and monitoring customer buy-in.
• Create a risk register to identify the items with the highest level of associated risk and actions that may be needed to mitigate those risks.
• Reduce instances of litigation, mistakes, and speed bumps.

Intended Audience

This course is targeted to individuals who meet or exceed the following professional demographics:

• Mid-level public procurement and central warehouse professionals who serve as in a management or equivalent functions within their respective entities.
• Non-procurement managers and supervisors who are responsible for either the procurement function or staff who provide procurement functions under delegated authority.
• Professionals who are employed by governing entities and special authorities (such as K-12 and higher education, publicly-owned utilities, transportation providers, and other publicly-funded or created organizations) that either serve within or manage the procurement function.
• Suppliers or representatives of suppliers seeking to understand the public procurement function from a holistic level, including the policies, standards, and procedures by which public entities must function.