Procurement Process

Process Process Risk Risk Impact Risk Risk Control Control Description Control Control Control
Likelihood Level Category Nature Frequency
Need Company may Possible shortage or Possible Low Implementatio A procurement system will give Preventive Automated Weekly
Identification end up purchasing surplus of supply. financial n of using a you the tools you need to collect
too much, not planning and procurement procurement and analyze transaction data for
enough, or the strategy will take a serious software. everything you buy and allow you
wrong goods and hit to accuracy to identify usage patterns and
services at sub- other information that make it
optimal prices. easier to develop purchasing
strategies.
Supply Chain Poor management Possible loss of money Possible High Implementing You can track vendor performance Preventive Automated Monthly
Management will lead the being spent to these vendor and issues, identify negotiation
company to be vendors. Staff will likely database or opportunities if your needs
exposed to spend too much of their portal. change, and cut costs significantly
significant risk of valuable time chasing by outsourcing part of your
false invoices and invoices. purchasing to trusted partners with
other deception by limited access to the system.
unethical vendors.
Contract Inefficient Businesses spend Possible Medium Quality review Review and approval by your legal Detective Manual Annually
Management management may considerable resources on and approval team means contract information
lead to 3rd party problems like rogue of Legal Team. is always accurate and up-to-date,
compliance spending and regulatory and staff can create new contracts
failures. compliance. In many cases, from pre-approved templates for
people still fall short in easy review and approval.
delivering contractual
obligations promptly
Receiving Company may It would cost the company Possible Medium Intensive Employees must conduct a quality Detective Manual Whenever
and Goods encounter money if ever they receive quality check check to ensure the items are not goods
Inspection damaged and defective products. They by employees. damaged or malfunctioning arrive
broken products. can’t manufacture it, or they materials. If any damaged items
will reprocess it to make it are found in the delivery, record
usable. the extent of the damage on the
consignment note and immediately
notify the supplier with details of
the issue
Warehouse Poor management Business can experience Possible Low Tracking Use an asset tracking system to Preventive Automated Weekly
and Asset may lead to loss of profit due to some system for label each physical asset you own
Management employee asset employees stealing assets inventory and and track where it is located. You
theft. due to poor management. physical can use such a system for
assets. inventory, machinery, vehicles
and supplies. You can protect
your assets by checking on them
to make sure they are in good
condition and are being used
properly.