ABSTRACT
Management Controls cover the principles; procedures; authorities, and checks and balances that the company relies on to guide and influence peoples' behaviours as they go about their business. The topic of management control is therefore highly relevant to Procurement Risk Management (PRM) but the whole area is one that is rarely understood and applied in business to the extent it needs to be. Contract management is a controls' minefield and a subject in its own right. The challenge is to persuade management that 'delegating more authority' is not relinquishing control, but rather replacing outmoded controls with modern alternatives consistent with the demands of business and the reality of a very complex and dynamic global supply environment. In the risk area of management controls, prevention is definitely better than cure. Trust is the key to company high-performance and effective controls. Business controls are vital, but will only be effective if they are seen as practical and relevant to the business exposure.
