Question

Using a risk assessment table discuss how risk can be analyzed in procurement

Answer 1

The project procurement risk should be informed not only by the country and
sector/agency procurement risks, but also by the characteristics of the proposed project. For
example, although large, a project with a single contract may have less risk than a smaller
project, with multiple implementing agencies, multiple geographic locations and a large number
of low value contracting packages. The framework guiding procurement risk assessment at the
country, sector and project level is based on the cascading approach adopted under ADB’s
Governance framework
Risk assessment requires knowledge not only of good procurement practices but also of
country context and sector specific conditions. The purpose of the risk assessment is to identify
situations or events which could hamper the effective implementation of the ADB financed
project.