Procurement risk management: a case in Turkish energy industry

Abstract

We present the current procurement risk management practice of Enerjisa, a major energy company in Turkey. We provide results of a managerial survey and interview conducted at Enerjisa, which illuminates the current perception of the critical procurement risks and how they are being managed effectively. Especially, we shed light on the procurement risk awareness and perception, critical drivers of procurement risks, risk assessment strategies, operational and financial hedging of procurement risks, and the path forward in managing procurement risks effectively. To this end, interesting strategic insights are presented that are potentially beneficial for supply chain and procurement executives not only in energy but also in other industries.