{"id":52147,"date":"2023-02-01T10:36:14","date_gmt":"2023-02-01T09:36:14","guid":{"rendered":"https:\/\/www.KGM Strategy.com\/?p=52147"},"modified":"2024-09-16T10:38:15","modified_gmt":"2024-09-16T08:38:15","slug":"procurement-risks-from-identification-to-management","status":"publish","type":"post","link":"https:\/\/www.KGM Strategy.com\/en\/insights\/procurement-risks-from-identification-to-management\/","title":{"rendered":"Risk Management in Procurement: KGM Strategy Study"},"content":{"rendered":"<div class='container  py-3'><div class=\"row \"><div class=\"col-lg-12\"><h2>Aligning risk management to the framework of global supply chains<\/h2>\n<p><span style=\"color: #a0d60a;\"><strong>Capacity and supply bottlenecks are a problem for almost all of the participants in our latest risk management survey. The risk of rising prices for intermediate products and increasing energy costs are also impacting procurement departments. Businesses are hard at work putting out these fires. Long-term investments in &#8220;fire protection&#8221; seem to take a back seat.<\/strong><\/span><\/p>\n<p>In our annual study, we examine how risk management in procurement is set up in companies and which risks are currently impacting companies also with view to the German Supply Chain Act which came into force in January 2023.<\/p>\n<p class=\"text-center mb-lg-6 mt-lg-4\"><a class=\"btn btn-primary\" href=\"#Download\">Download the latest study results<\/a><\/p>\n<h3><strong>What are the risks in procurement?<\/strong><\/h3>\n<p>Risks in procurement include all potential events that may not go according to plan and can have a significant impact on pricing, security of supply or quality.\u00a0For professional risk management, the risks in procurement should first be identified.\u00a0The following risks are currently receiving greatest focus within procurement teams:<\/p>\n<ul class=\"checklist checklist-cols-2\">\n<li>supply risks<\/li>\n<li>price risks<\/li>\n<li>energy costs &amp; supply<\/li>\n<li>supplier default risks<\/li>\n<li>sustainability risks<\/li>\n<li>currency risks<\/li>\n<li>compliance risks<\/li>\n<li>quality risks<\/li>\n<\/ul><\/div><\/div><\/div>\n<div class='container  py-3'><div class=\"row \"><div class=\"col-lg-12\"><h3>Extract from the latest Risk Management Study:<\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-81529 size-full\" src=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2023\/02\/issues-risk-diagramm.png\" alt=\"\" width=\"1178\" height=\"520\" srcset=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2023\/02\/issues-risk-diagramm.png 1178w, https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2023\/02\/issues-risk-diagramm-800x353.png 800w, https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2023\/02\/issues-risk-diagramm-768x339.png 768w\" sizes=\"auto, (max-width: 1178px) 100vw, 1178px\" \/><\/p>\n<p><strong>Energy supply<\/strong>\u00a0is a risk for most companies \u2013 they expect\u00a0<strong>purchasing prices<\/strong>\u00a0to continue to rise and\u00a0<strong>increase cost pressure<\/strong>.\u00a0For 83% of those surveyed, rising energy costs currently represent a business risk. Rising prices for raw materials and preliminary products are impacting 72%.\u00a0At 66%, the risk emanating from\u00a0<strong>supply bottlenecks<\/strong>\u00a0has decreased slightly in importance compared to last year (-27 percentage points): Coronavirus-related supply uncertainties are declining, marking a slow return to the original material availability.<\/p>\n<p><strong>Rising<\/strong>\u00a0purchase prices as a result of\u00a0<strong>inflation<\/strong>\u00a0are increasing the cost pressure for Procurement.\u00a074% of the companies surveyed expect increased prices as an effect of inflation (top 1) and 70% see themselves exposed to increasing cost pressure in the future (top 2).\u00a057% rate the influence on their own active risk management as (very) high;\u00a026% expect (very) major effects on the product group structure.\u00a0Around 20% of participants are expecting major impact from supplier insolvencies;\u00a040% see little or no influence.<\/p>\n<p>&nbsp;<\/p><\/div><\/div><\/div>\n<div class='container  py-3'><div class=\"row \"><div class=\"col-lg-6\"><a id=\"Download\"><\/a><\/p>\n<p><span style=\"color: #a0d60a;\"><strong>You can download the risk management study results free of charge below:<\/strong><\/span><\/p>\n<p><script charset=\"utf-8\" type=\"text\/javascript\" src=\"\/\/js-eu1.hsforms.net\/forms\/embed\/v2.js\"><\/script><br \/>\n<script>\n  hbspt.forms.create({\n    region: \"eu1\",\n    portalId: \"143321638\",\n    formId: \"d1df3053-1606-4925-b3e1-167d276ce668\"\n  });\n<\/script><br \/><\/div>\n<div class=\"col-lg-6\"><p><iframe loading=\"lazy\" src=\"https:\/\/player.flipsnack.com?hash=RTk4RjhEODhCN0ErYzhlb2k1bjd0OQ==\" width=\"100%\" height=\"600\" frameborder=\"0\" scrolling=\"no\" seamless=\"seamless\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The current risk management study reveals deficits in methodology and use of digital tools for risk prevention.<\/p>\n","protected":false},"author":10,"featured_media":62506,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"none","_seopress_titles_title":"Procurement Risks: Risk Management Process | KGM Strategy","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[700,716,394],"tags":[],"class_list":["post-52147","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-article","category-risk-management","category-general-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/posts\/52147","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/comments?post=52147"}],"version-history":[{"count":0,"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/posts\/52147\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/media\/62506"}],"wp:attachment":[{"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/media?parent=52147"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/categories?post=52147"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/tags?post=52147"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}