ABSTRACT
Risk management actions fall into two categories, namely: 'Direct Actions' reduce or eliminate the impact of disruptive events, whilst 'Indemnity Actions' are designed to compensate for loss if it occurs. Specific risk events, and the means of dealing with them, have been illustrated to show how different the landscapes are, as well as emphasising the fact that risks exist inside the organisation as well as outside in supply chains and supply markets. The philosophy of this guide is that truly effective Procurement Risk Management (PRM) requires the organisation to have a process for working things out and also to possess a culture and operating framework in which risk management is systemic and as much a part of daily activity as is turning up for work in the first place. The emerging theme is that organisations are assessing themselves as being similarly prepared for risks in the areas of External Dependencies, Management Controls and Procurement Process.
