Brief: The Ukraine Situation And The Importance Of Supplier Risk Management

Too often companies look on helplessly as factors outside their control affect suppliers' — and hence their own — ability to deliver work. Even though most firms talk about managing vendor-related risk, in reality they generally identify and track risks, but don't have any solid action plans to treat those risks if they actually occur. The situation in Ukraine provides a clear example of why risk tracking isn't enough, and that effective vendor management means planning contingencies before risks occur. This document looks at how to include risk management and treatment options into new deals and also what to do now if you ignored aspects of vendor risk during vendor selection and initial contract negotiation.