In an era of global volatility, procurement and supply chain leaders face an urgent challenge: how to futureproof their function against risk.
Whether it’s geopolitical disruption, raw material shortages, or supplier insolvency, procurement professionals are on the front line of business continuity. And while some risks are out of our hands, many are manageable, with the right strategies, systems and talent.
Why risk management is the new core competency
For years, risk management was seen as a back-office function. Not anymore. Today, it's central to performance, resilience, and competitive advantage.
According to recent CIPS data, over 60% of procurement leaders say their supply chains have become more vulnerable post-pandemic and that trend continues amid global conflicts, environmental disasters, and regulatory shifts.
Risk now touches every point in the supply chain. From supplier reliability and cybersecurity to ESG compliance and logistical agility, risk has evolved. It's more complex, more interconnected and harder to see coming.
The top risks keeping procurement leaders up at night
These are the top supply chain risks on the radar for mid-senior procurement leaders:
- Supplier Failure
Overreliance on single-source suppliers is a common pressure point. Economic instability or internal mismanagement can cause sudden disruption. Smart procurement leaders are now using supplier diversification and financial health checks as standard practice.
- Geopolitical and Regulatory Uncertainty
From tariffs to trade wars, the rules are shifting fast. The most agile teams use scenario planning to evaluate impact and develop action plans long before a crisis hits.
- Logistics and Transportation
With increasing port congestion, shipping delays, and rising costs, logistics risk is higher than ever. Strong partnerships with 3PLs and data-driven forecasting can help mitigate this.
- Cyber Threats and Data Leaks
Digital procurement has brought speed, but also exposure. Vetting supplier cybersecurity protocols is now a procurement imperative.
- ESG Non-Compliance
Stakeholders and consumers are demanding transparency. Procurement teams must now manage the ethical and environmental risks associated with supplier practices and ensure compliance with fast-evolving ESG standards.
So, what does good look like?
The most resilient procurement functions don’t just identify risk, they embed risk intelligence into every decision.
Here’s what they’re doing:
- Real-Time Risk Monitoring Tools: Platforms like Resilinc and Riskmethods are enabling procurement teams to monitor supplier and geopolitical risk in real time.
- Cross-Functional Collaboration: Finance, legal, operations, and procurement now sit at the same table. Risk management is a team sport.
- Contractual Agility: Smarter contracts include risk clauses, force majeure protections, and KPIs tied to performance and resilience.
- Talent Strategy: Hiring professionals who understand both procurement and risk is becoming essential. Forward-thinking organisations are working with specialist recruiters to find this hybrid talent.
The Talent Gap: Do You Have the Right People?
Here’s the truth: You can’t manage risk without the right capability. Many organisations still rely on outdated skill sets or overburdened teams to manage high-stakes decisions.
That’s where a specialist recruitment partner can help, identifying procurement professionals with a strong commercial mindset and a strategic grasp of risk. These are the people who can spot red flags, negotiate smarter contracts, and build bulletproof supplier networks.
Risk is no longer an operational nuisance, it’s a strategic priority. The businesses that thrive in the next decade will be those that build resilience, not just savings.
Whether you’re building a new supplier framework or upgrading your digital tools, now is the time to put risk management at the heart of your procurement strategy.
Looking to build a risk-resilient procurement team?
At Procurement People, we specialise in placing procurement and supply chain professionals with the expertise to navigate complexity and deliver results. Get in touch with our specialist recruiter Will Terry at will.terry@procurement-people.com to find out how we can help futureproof your team.
