Risk Management Experiences in Relation to Hewlett-Packards PRM System - Dissertation Example

Download file to see previous pages The most important point relates to risk management integrated into business models.
1.1. Objectives of the Study
The primary goal of the paper is to establish the extent to which risk management is ingrained in business models developed by companies. This is in reference to the Procurement Risk Management (PRM) used at Hewlett-Packard. The process involves analysis of case studies and empirical evidence related to the study. The paper will also tackle various aspects of risk management strategies used in different industries including the services and public sectors.
The study specifically will analyse the different procurement risks are identified by Miller and Lessard (2008), Keizer, Halman and Song (2002), Zsidisin and Smith (2005) and Cox, Chicksand and Ireland (2005). There are risks identified in reference to previous studies involving procurement risk management. The summary of each study will be discussed in the succeeding parts of this section.
1.2. Background of the Study
Technological risks lead to a non‐completion, under‐performance of the acquired product or service which likely is traced from the supplier. Technological risks happen when suppliers fail to fulfil their promise of providing top-notch products or services. Often suppliers encounter internal problems which include substandard technology, obsolete process or an ineffective workforce. Companies often experience difficulty in shifting trajectories once a certain technology is used. This may create problems if the procurement takes place before competing technologies have been explored adequately. This risk should presumably be of particular relevance in the procurement of products in the fluid phase (Utterback, 1994, Currie 200).
Both organisational and societal risks are related to acceptance, compatibility and absorptive capacity. Additional risks are related to short‐termism in decision-making within companies. An example includes the mismatch between short-term budgetary frameworks and projected long-term gains. ...Download file to see next pages Read More