Risk Management in Procurement of oil material

Oil industry is one of the most sensitive industries that exposed to various risks, this due to several reasons. Thus, the challenge is how to mitigate the effects of these threats and risks during procurement operation. This is where risk management issue and supply chain management is vitally needed by procurement practitioners to execute their procurement operations efficiently and agile. The purpose of this research is to investigate the role of supply-chain risk management in the oil industry and more specifically to understand how material procurement practitioners assess supply chain risk management to achieve smooth procurement operations. To investigate and examine the risk management practice within procurement organizations, a mixed method (qualitative and quantitative) has been adopted. Questionnaire and data collected from 65 procurement managers, supported by 9 semi-structural interviews been conducted to complement the finding of the questionnaire. This research revealed that service providers and contractors are the highest percentage of stakeholders who are practicing risk identification technique. Therefore, the interview with number of procurement managers shows that numbers of risks such as clone parts are much harmful on material procurement operations.