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2A(3.3.5) Risk Analysis
Strategic Sourcing Framework

Description

Risk Analysis is done  as part of evaluating and developing the sourcing approach.  
The objective of risk analysis is to assess and identify any risks associated with the project and 
develop mitigating actions to minimise possible delays and disruptions.
The SWOT analysis that was done earlier will assist with the risk analysis process:
  • The identification of weaknesses and threats will inform your assessment of possible risks.
  • The identification of strengths and opportunities will inform solutions or approaches to managing the risks.
Objective:
To assess and identify any risks associated with the project and develop mitigating actions to minimise possible delays and disruptions.
Output:
  • Risk Scorecard and Mitigating Action List

WHAT IS RISK ANALYSIS?
Risk analysis is a procedure used to identify and assess factors that may threaten the success of a project. 
Supply risks exist in every organisation and a risk analysis is often overlooked.
It is imperative that the project team take cognisance of potential risks, both internal and external, 
throughout the strategic sourcing process.
The assessment is intended to provide a high level view of the operational risks associated with strategic 
sourcing and the related business changes required to deliver the benefits.
Specific risk management activities of the project team include:
  • assessing the nature and extent of the risks associated with the organisation’s operations,
  • any potential third party impacts
  • deciding on an acceptable level of loss or degree of failure,
  • deciding how to manage or minimise the risk; and
  • monitoring, reporting and, from time to time, reassessing the level and implications of the risk exposure.

See related topics and documents
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2A(4.2) SPF GPG - Risk Analysis.docx