Sourcing and Procurement
Glossary
Your trusted guide to exploring sourcing and procurement terms & definitions,
from the world’s leading procurement experts and companies
Risk
A risk is the possibility that something negative will happen. Download a document describing the different types of risk from the SIG Resource Center at http://www.sig.org/src.php?id=8904.
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Risk Mitigation
The active practice of avoiding predicted events that could cause harm to a business and its operation.
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Risk assessment
An assessment that considers the severity of a hazard and its potential outcome in conjunction with other factors including the level of exposure, the number of individuals exposed and the risk of the hazard being realised
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Risk, Matrix
A summary view of risks, typically classified on two dimensions.
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Risk, Technical
Risks related to the extent to which the supplier is able to provide the desired functionality and performance.
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Road safety impact assessment (RSIA)
A formal, independent assessment of the impact of new or altered layouts and entry points on the safety of a road
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Risk Management Plan
Strategies and a plan of action for managing any identified risks in the sourcing solution. The goal is to identify actions that enable the buyer and/or supplier to better manage risk.
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Risk Premium
The value (typically in term of a fee) paid to a party that knowingly and willingly bears a risk and is rewarded for doing so in some form or another.
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Risk register
A document that sets out identified risks, the likelihood and impact of them materialising and who is responsible for dealing with them
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Risk, Performance
Risks related to the change that the supplier is not capable of doing the job it was hired for.
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RoHS
Acronymn for Restriction of Hazardous Substances. The European Union's directive, effective July 1, 2006, regarding six hazardous materials (lead, cadmium, mercury, hexavalent chromium, ploybrominated biphenyls, and polybrominated diphenyl ethers) used in the manufacture of electronic and electrical equipment.
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Robinson-Patman
An antitrust law prohibiting unfair trading practices such as giving a supplier false information about what the buyer is paying another supplier in order to obtain a lower price.
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