Rethinking Risk: Insights from the 2025 Risk Management in Procurement Study

 

In today’s volatile business environment, risk management is no longer just a box to tick – it’s a strategic imperative. Our latest Risk Management in Procurement Study reveals a dramatic transformation in how companies perceive and address risks. From navigating a poly-risk landscape to restructuring global supply chains, businesses are under pressure to shift from reactive firefighting to proactive resilience-building.

This video series dives deep into key findings, emerging trends, and recommended actions that every procurement leader should consider. Watch the full series below to discover how to turn risk into competitive advantage.

(1/4) The Poly-Risk Environment – The New Normal in Risk Management

The risk landscape has evolved – and not for the simpler. Businesses now face a complex web of equally pressing threats, from price volatility to compliance and quality risks. This video unpacks why traditional, single-risk strategies no longer suffice and what it takes to prioritize effectively in a poly-risk world.

 

The risk landscape has shifted dramatically. Our latest Risk Management in Procurement Study shows that businesses are no longer dealing with a few dominant risks, but rather a poly-risk environment where multiple threats hold equal weight.

Compared to 2022, risks like energy costs, inflation, and recession—once the clear frontrunners—have become less dominant. Instead, market and price volatility continue to be major concerns, with over 50 percent of businesses facing increased cost pressures. Price and supply risks remain top priorities, yet compliance and quality risks have gained more relevance, resulting in a more complex risk landscape.

This shift requires companies to rethink their approach. The challenge now is not just addressing risks but effectively prioritizing them. Are businesses prepared to transition from reactive responses to proactive strategies?

(2/4) Geopolitics & The Restructuring of Supply Chains

Supply chains are being reimagined under the weight of geopolitical tensions and economic turbulence. Discover how companies are balancing regionalization, supplier consolidation, and cost pressures – and the long-term trade-offs that come with resilience-focused strategies.

 

Geopolitical shifts and economic uncertainty are driving significant changes in supply chain strategies. Our Risk Management in Procurement Study reveals that companies are increasingly turning to regionalization and supplier consolidation to mitigate risks.

Supply chain disruptions remain a pressing issue, affecting 76 percent of businesses, yet the reasons have evolved. Compared to the last years, capacity bottlenecks at suppliers have dropped, while supplier insolvencies have surged from 7 to 31 percent.

More than half of businesses expect higher costs as they restructure supply chains, focusing on nearshoring and reducing supplier diversity. While this shift enhances resilience, it also increases operational expenses. The key question remains: can companies afford these changes in the long term, or will they be forced to rethink their approach once again?

(3/4) What Companies Are Doing – And What’s Missing

From AI adoption to early warning systems, progress in risk management is happening – but not fast enough. This video reveals where companies are advancing and where critical blind spots remain, especially in digital readiness and traditional mitigation practices.

 

Companies are adapting to an increasingly complex risk environment, but are their current measures enough? The Risk Management in Procurement Study highlights both progress and challenges in risk management strategies.

Since 2022, early risk detection systems have gained traction, with adoption rising from 24 percent to 45 percent. AI integration has also improved, with 42 percent of businesses incorporating it into their risk management processes. However, despite these advancements, less than half of the surveyed companies are using digital tools for risk detection, leaving a significant gap in proactive risk management.

At the same time, traditional mitigation strategies have declined. Dual sourcing and stockpiling, once key measures, have decreased by 18 percent due to cost pressures and changing business priorities. While supplier evaluations are now more frequent, businesses still lack the tools and resources needed for structured, data-driven risk management.

The shift is happening, but is it happening fast enough?

(4/4) Recommended Actions for Stronger Risk Management

What does effective risk management look like in 2025? This closing video outlines three must-do actions: digitize, diversify, and embed a proactive culture. Learn how to create a ‘risk control tower’ mindset and future-proof your organization.

 

With risks becoming more complex and interconnected, businesses need a stronger, more proactive approach. Our Risk Management in Procurement Study outlines three key actions to build resilience and ensure long-term stability.

First, companies must implement digital tools to strengthen risk management processes. Transparency across the supply chain is critical, and data-driven solutions—such as AI-based early warning systems—help detect potential disruptions before they escalate.

Second, strengthening resilience is essential. Companies should expand their countermeasures to address growing risks like supplier insolvencies, using dual sourcing, regional diversification, and smart inventory management to reduce vulnerabilities.

Finally, organizations must embed a culture of proactive risk management. Risk mitigation efforts should not decline just because the most immediate threats have stabilized. A broad range of risks must remain on the radar, ensuring risk management is deeply integrated into company operations. Establishing a ‘risk control tower’ and cross-departmental processes will help organizations monitor and respond to emerging threats effectively.

The key takeaway is clear: risk management must become a proactive, strategic function rather than a reactive necessity. Companies that make these changes now will build a strong competitive advantage for the future.

 

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Do you have any further questions? Then contact our expert!

Sebastian Wellmann

Associate Director

sebastian.wellmann@inverto.com
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