Gartner Research

Use Gartner’s Optimum Risk Utilization Framework to Drive Competitiveness and Improve Agility in Procurement

Published: 10 June 2019

ID: G00395012

Analyst(s): Koray Kose

Summary

CPOs face uncertainty, often with a narrow view of risk and rarely as a lever for upside opportunities to create competitive advantage. This research refocuses the risk definition in a practical framework and introduces optimum risk utilization as a catalyst for success through sourcing.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Define the Optimum Risk Utilization for Sourcing to Advance the Business Strategy
    • Understand, Communicate and Champion the Shift in the Risk Paradigm
    • Develop and Formalize the Sourcing Risk Appetite Statement
  • Build Cross-Functional Governance to Serve as a Risk Oversight and Advisory Function to Support Risk-Based Decision Making
  • Utilize the Integrated Risk Model to Create a Bimodal Optimized Risk Utilization Sourcing Strategy
    • Bottom Line: The Unique Opportunity to Make a Difference

Gartner Recommended Reading

©2019 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Become a client