Risk Management/Mitigation in Successful Sourcing
Sourcing strategies are highly complex and can often turn out to be highly risky. The risks however aren’t noticeable immediately. The main focus of sourcing is cost saving, but savings can sometimes be overrated. Some of the issues that have been experienced by the organizations are negative propaganda, imperfect functioning, safeguard and confidentiality problems and unexpected expenditures. Taking these factors into consideration it’s important to include risk management and mitigation in every phase of sourcing.
Practically sourcing projects are problematic and troublesome, even for skillful managers. The plan devising and rendering can be breathtaking and is time consuming. Careful and close scheming is highly important. It is easy to miss on some probable opportunities without a prior experience and precise technique. It is important to keep up with the goals the organization is trying to reach and to keep on the track. In such situations a sourcing advisor with high experience can safeguard you from the complexities and can lead you through the risks and complications and can help you achieve the goals set.
System should include an Audit trail, a record showing who has accessed a system and when was the system accessed. This also helps in keeping a track of operations performed. The use of audit trail can help secure and recover the lost transactions. These are also useful to ensure that both the parties are up to their responsibilities.
Risks, probability of non-specific and undetermined future incidents, should be taken into considerations. While it’s important to be confident on the plan put forth it is also crucial to take into account the risks associated with it. Avoiding this can jeopardize the entire execution and the organization. So it’s very critical to not only look into the risks involved but to measure the possibility of it happening and if does take place what are the consequences of it....