Having undertaken a full Supply Chain analysis, food buyers then need to carry out a risk or vulnerability analysis which involves:-
- Clearly identifying areas of particular risk in the total supply chain
- Developing procurement plans which recognise these risks and effectively manage them so that you…
- Are able to make a substantial reduction in risk exposure in a short period of time and then to sustain at that level, or preferably lower the risk in the medium term.
Risk Analysis requires the assessment of the following three key aspects:
- Business Impact
The risks can then be quantified, logged and action plans created to deal with the risks. There are various ways to record / gauge the risks involved with a particular food procurement:
- A Risk Analysis Matrix - a typical template is attached below including a populated example.
- A Risk Analysis Document & Scoring Matrix which allows you to attribute scores to your risk analysis.