Home About Procurisk News Contact Us
Data Sets

A wide range of datasets to cover all aspects of Procurement Risk

Procurisk® contains a wide range of Datasets to cover all aspects of Procurement Risk. To find out more, please select one of the modules below.

This data set of Procurisk probes the risks that may exist in your choice and use of vendors. The alignment of business interests with choice of vendor requires the exercise of 'due diligence' across technical, commercial and financial considerations. Superficiality of decision making will present high risk in that no foundation of informed knowledge will exist. A scrutiny of the due diligence that is undertaken is highly relevant in todays economic situation.

There are many examples of poor choices being made, including selection of strategic suppliers who lack the resources and skills to make the deliverables. It is not unknown for some vendors, following contract award, to be advertising for staff and making hasty sub-contracting decisions.
Effective procurement and supply chain management requires high quality IT Systems support, otherwise accurate and timely data will seriously jeopardise management decisions and actions.

This data set of Procurisk� will expose where procurement is vulnerable because of inadequate IT systems support. The significant business benefit that will accrue is identifying where procurement can be more efficient and ensure that the organisation is not exposed to risks caused by inadequate information emanating from IT systems.
One of the greatest assets of an organisation is its intellectual capital. Identifying the processes, relationships and management of that capital is a vital business differentiator.

The investment in developing intellectual capital in procurement is a serious consideration, as is the creation of knowledge management systems. The link between Procurement and Human Relations specialists is an essential ingredient of success.

Attendance on isolated learning events is inefficient and unlikely to deliver tangible benefits to either
This data set of Procurisk has been designed to deal with and emphasise post-contract award actions.

It is recognised that procurement and, potentially, a multitude of stakeholders may have their finger in the contract management pie. In general business terms there is no shortage of examples where inadequate contract management has led to disastrous consequences.

These include, project costs spiralling out of control, timescales slipping, production being stopped, the supplier managing stakeholders and agreeing contract changes without following the correct process.
Reporting procurement performance in an accurate and timely manner to the appropriate decision makers in an organisation is vital.

This data set of Procurisk will probe the existence and range of procurement performance metrics and their visibility within the organisation. The corporate benefits will include that of placing accountability on procurement for a range of performance metrics that extend far beyond the simplistic reporting of 'buying at the right price' and 'getting deliveries on time'. It is a fact that in many organisations, procurement only comes under scrutiny when there is a crisis.
The performance of procurement is determined by the quality of their stakeholder relationships and the ability to manage the ensuing dependencies. Procurement cannot determine strategies and policies in isolation of others within the organisations.

To adopt an isolationism strategy, will result in a lack of credibility and a determination by others to undermine the procurement process. The quality of specifications and resultant Key Performance Indicators will enhance the ability of procurement to produce high quality tenders, conduct high quality negotiations and put in place appropriate contracts. The ideal scenario is for procurement to engage in a process when a purchase or project is being contemplated.
Most things in business are achieved through people. The Supplier Relationship Management risk data set probes how the relationships are managed recognising that there are a wide range of staff engaged in this activity.

The creation of excellent supplier relationships requires expert knowledge and skills, and the capability to deal with suppliers at all levels, including Divisional and Group Board Directors.
When the supply market is inexpertly researched and managed the business consequences can be extreme.

Within the past decade there have been nuclear explosions, oil storage explosions, IT system failures, shipping strikes, supplier mergers and many other situations, each presenting risk. The vagaries of supply markets need constant research and vigilance by procurement that are accountable for managing supply chain risks.
It is inevitable, that at some stage in the life of an organisation, they will have a dispute with a third party.

The Contract Risks module is designed to probe whether the suppliers contractual obligations are fully defined and set out, remedies are available and that adequate provision is made in the contract for all post-contract award activities, including contract management and a right of audit.
This module is designed to expose financial risks occasioned by procurement and supply chain actions.

A failure to adequately cover off these risks has jeopardised the commercial future of some organisations. In others, there has been severe reputational damage when budgets have been exceeded and project costs have escalated to embarrassing levels.
Paying the wrong price for goods, services and projects will erode margin, or eradicate it. It isn't only a question of the initial price, it is the through life costs that will also impact on profitability.

Probing the origin of prices requires expert knowledge, negotiation and post contract award, and contract management. An ability to understand the suppliers pricing strategy will go some way to effective negotiation. Making high quality pricing decisions is a hallmark of a world-class procurement operation. The quality of the pricing decision will be a significant contributor to profitability and the cost of goods and services provided to third parties.

The logic of pricing decisions applies to all categories of procurement, including high risk projects such as IT and Construction. This data set of Procurisk will probe the whole gamut of pricing decisions and show where short and long-term risk exists. This data set will identify risk and when mitigation strategies are deployed there can be short-term positive impacts on the bottom line.
The business risks of failing to manage IPR ownership can irreparably damage the organisation, technically and financially. They may, unwittingly, fund the supplier's product development or service solution and subsequently have no rights to the resultant IPRs.

The custodianship of managing intellectual property risks with third party suppliers must primarily lie with procurement that will be advised by legal, product design and specialist IP lawyers. It is not an area of expertise for the faint hearted or the inadequately briefed! The potential intellectual property risks to be considered will include patents, trademarks and copyright.

The ownership of IPRs will need to be identified prior to contract award, as will those IPRs that flow from the contract work where there are joint design actions. This data set of Procurisk will identify where Intellectual Property risks exist, thereby highlighting business actions and mitigation strategies that are required to deal with the IPR risks that exist.
One-off Projects are notorious for cost overruns, extended commissioning dates, health & safety breaches and, not infrequently, a complete failure of the Project to deliver the business benefits contained in the business case.

Procurisk ® is a registered trademark of Brian Farrington Ltd.
Copyright © 2020 Brian Farrington Ltd. All rights reserved.

Brian Farrington Ltd
Rainford Hall, Crank, St Helens, United Kingdom, WA11 7RP

Privacy Policy       Terms and Conditions       Contact Us