Six steps for better procurement outcomes with cognitive data-driven risk management
RISK MANAGEMENT
better insights into supplier behaviour and associated risks to make more informed decisions during supplier evaluation , monitoring , and compliance management .
“ Cognitive data-driven risk management for procurement is undoubtedly a major enabler for your organisations to keep you ahead of the curve in the dynamic business environment , where risks can surface abruptly and can have considerable threat to the bottom line , With the increasing complexity of global supply chains and growing regulatory requirements , cognitive data-driven risk management for procurement is becoming an essential tool to ensure compliance and minimise risks ,” explains Zycus .
Six steps for better procurement outcomes with cognitive data-driven risk management
• Define the problem
• Gather the data
• Choose the right technology
• Train the system
• Monitor and evaluate
• Engage stakeholders
“ Implementing cognitive procurement requires careful planning , data gathering , technology selection , training , and evaluation . By following these steps , you can improve your procurement processes and achieve goals like cost savings , efficiency gains , improved supplier relationships , fraud prevention , improved supplier performance , and contract compliance .” – Zycus
The challenges of adopting cognitive data-driven risk management Like all strategies , cognitive data-driven risk management isn ’ t without its own set of challenges , with Walden explaining that “ the most common challenge ” is “ access to highquality , up-to-date data , and then feeding it to the AI so it can be acted on ”.
“ Another challenge is negotiating the limitations around how creative and innovative the AI can be , particularly in terms of proposing or recommending solutions to risks and issues . Artificial intelligence is