Do we carry increased risk in some of our procurement projects?

With most of our budgets resolved, we can start to turn our heads to getting underway on operational and CAPEX project delivery - including those priority and complex procurement activities. Some of these carry increased risk profiles and have we considered how we mitigate this? After all, we don’t want to end up on the front page of The Courier-Mail.

Risk is alive and well outside the areas where we traditionally look for (and find) it. Given the complexity and speed of change in today’s business world, one can logically argue that there is more risk for procurement professionals today than was the case 20, or even 10 years ago. Read our article on the most common types of procurement risk here.

Areas where procurement risk may arise

These key areas of potential procurement risk are a convenient starting point for your council’s procurement risk identification: 

The below procurement category types may carry increased risk profiles.

This could be due to ensuring fairness and transparency to your local contractors, it could be that you're implementing a long-term ERP solution or outsourcing facilities, leasing or waste collections contract. Or you could have one of those projects of significance that have associated financial, delivery, and reputational risks.
These types of tenders need well-thought-out sourcing strategies, robust scope development, defensible evaluation plans, strong KPIs and contracts in place to ensure the right outcome.
 
Whether you need some extra support due to current capacity and capability constraints or need some independence in the process due to identified reputation, financial or delivery risks - our expert team is here to help your organisation.

See our capability statement, or read more about the Peak Services Procurement Office.

For more information on our Technical Consulting Advisory Services, contact Brian Jackson, Director Consulting Services on 0467 767 825.