Procurement Management

Contents

1 Introduction 4

II. The Risk – definitions, factors and structure 4

1. Risk Definitions…………………………………......4

2. Risk Factors……………………………………...….5

3. Risk Structure……………………………………….5

III. Risk Management Planning 6

1. Risk Identification ………………………….............7

2. Qualitative Risk Analysis..……….……....................7

3. Quantitative Risk Analyses..………………………..7

4. Risk Ranking.…………...…………………………..9

5. Risk Response Strategy.……...……………………..9

6.1. Positive Response Planning....………………….9

6.2. Negative Response Planning....…………...........10

6. Risk Monitoring and Control….……………………10

IV. Conclusions 12

I. Introduction

The risk is everywhere in our everyday life. It can be found on the street, when driving a car, in the sports hall, when playing sports, when flight by airplane, etc. Actually from thousands of years, the people are trying to avoid or minimize the risks in their life. Every person has individual perceptions of the risk and respectively is reactions are different. Some people do not perceive the thunderstorm as a risk for them and respectively are not trying to avoid such nature phenomena. Another are considering it as a serious risk and trying it by limiting the walking in open spaces and put a lighting rod on their houses. The risks, concerning the human health and life is relatively easy to be detected, even not in full, and every single person has in his mind responses for such risks. In the business, the risks are not so visible and need to have tools to identify them and methods for avoiding or minimizing. Risk management was often ignored in the past, but today it is more and more important and implement in more and more organizations. Jacqueline Jeynes summarize “It is vital all business risks to the business should be considered strategically at the most senior level…” (Jeynes, 2002:5).

II. The Risk – definitions, factors and structure.

2.1.Risk...