What is risk mitigation planning in SRM?

Risk mitigation planning in Supplier Relationship Management (SRM) revolves around developing effective strategies to address and manage potential risks associated with suppliers. This involves identifying risks that could impact the supply chain, such as financial instability, operational issues, or geopolitical factors, and devising plans to minimize or eliminate those risks.

By focusing on proactive strategies, organizations can ensure continuity of supply, enhance their resilience against disruptions, and create a more robust supply chain. These strategies may include diversifying the supplier base, establishing contingency plans, and implementing performance monitoring systems. The emphasis is on not just identifying risks, but also taking actionable steps to prevent them from affecting the business's ability to function smoothly.

This approach is critical in building strong, trustworthy relationships with suppliers while safeguarding the organization against unforeseen circumstances that could lead to significant operational setbacks.