Read the given statement and answer the problems that follow.
A certain amount of risk taking is significant if an organization is to achieve its objectives. Those organizations that are more risk aware appreciate that actively managing threats and opportunities provides them with a competitive advantage. Taking risk is the very essence of business survival and growth.
(a) Conceptualise the terms ‘Risk’ and ‘Risk Management’.
(b) Describe what should be done for risk management to be effective in your organisation. Give instances to demonstrate your answer.
Conducting supplier appraisals is the key role of the purchasing professional. Describe how supplier appraisals and pre-qualification of suppliers can assists to mitigate risks.
The management of risk approach comprises the risk management policy, process guide, risk and plan register. Describe the main risk management concepts which need to be considered in establishing these documents.
Management of risk principles are necessary for the development of good risk management practice. Discuss.
In today’s uncertain and turbulent businesses, supply chain vulnerability has become an issue of significance for many companies. Identify and describe the main sources of risks in supply chain.