A supplier risk assessment identifies and rates events that could prevent a supplier from meeting contractual or operational obligations. It should cover both the supplier and the supply route.
The operating decision
Assess likelihood and impact using defined criteria. Review financial, capacity, quality, geographic, regulatory, cyber, continuity, concentration and logistics exposure where relevant.
Evidence to retain
Document risk owners, evidence, mitigations, residual risk, monitoring indicators and escalation thresholds.
| Area | What to record |
|---|---|
| Decision | Assess likelihood and impact using defined criteria. Review financial, capacity, quality, geographic, regulatory, cyber, continuity, concentration and logistics exposure where relevant. |
| Evidence | Document risk owners, evidence, mitigations, residual risk, monitoring indicators and escalation thresholds. |
| Watch point | A single composite score can hide a critical issue. Keep the underlying risk dimensions visible. |
A common sourcing mistake
A single composite score can hide a critical issue. Keep the underlying risk dimensions visible.
Related definitions: strategic sourcing, supplier prequalification, landed cost.
