An Assessment of Procurement Risks Management Systems in the Public Sector

Risk management in public procurement is a critical aspect that needs to be addressed in the public sector. Several studies have been conducted to understand the challenges and factors influencing risk management in public procurement. These studies have explored the importance of risk management principles, the role of political influence, and the need for effective risk assessment and anticipation. The research has also highlighted the need for specific risk management mechanisms and tools to be implemented in public procurement processes. Risk management reforms in the public sector are essential but often circumvented due to assorted reasons, such as political influence and the emergence of new risks. The research investigation employs a quantitative research design. A total of 380 questionnaires were recovered from respondents. The study showed that the public sector has a procurement risk management system that is effective, but there may be some areas for improvement in the prequalification process, onboarding process, and support provided to newly onboarded suppliers. Additionally, the public sector used some strategies to mitigate and control contract risks during the procurement process, but there were some areas for improvement in the review and lessons learned process, risk mitigation measures, contract monitoring and performance evaluation mechanisms, and communication and documentation process. Finally, the results suggest that there were constraints placed on the risk management strategies currently utilized by professionals working in the public sector. These constraints include insufficient support and buy-in from senior management and stakeholders, bureaucratic or administrative hurdles, inadequate policies and regulations, insufficient training and skill development opportunities, and insufficient resources. The study highlights the significance of tackling risk management in the realm of public procurement and offers valuable perspectives on avenues for enhancement, obstacles encountered by practitioners, and the necessity of thorough evaluation and revisions. Through the adoption of the suggestions originating from this study, governmental entities can improve their procurement risk management frameworks and guarantee improved adherence to risk management principles.