ART - Using NIGO Code to Identify Risk 2009

The document discusses the importance of incorporating risk management into the procurement process. It highlights that while the focus in public procurement is often on price, it is crucial to consider other factors such as risk. The document presents an approach to incorporating risk into procurement, which involves assessing the procurement, understanding the associated risks, and rating procurements based on risk factors. The document also introduces the concept of procurement quadrants, which categorize procurements based on their dollar volume of spend and relative risk. It suggests using the NIGP Code as a grouping mechanism to track spend data and analyze risk. The document concludes by outlining different procurement strategies for each quadrant and emphasizing the need for periodic review of risk profiles and procurement volumes.