Anything that can go wrong will go wrong.
When it comes to procurement management, Murphy’s law says it all. As with any project, procurements run into unexpected things all the time. In this chapter, we will learn what risk is, how to identify risks, determine their probability, determine their impacts, create responses, and monitor and control those risks.
Why do we care about risks? During all procurements, something unexpected will happen. It could be that the company we are negotiating a contract with goes out of business. It could be that our management decides not to proceed with the procurement at all or the budget for the new contract spend is reduced significantly. Other more common issues can arise ...