Procurement Risk Assessment for United Arab Emirates

Procurement Risk Assessment Template for United Arab Emirates

A comprehensive template designed for conducting systematic procurement risk assessments in compliance with UAE federal and emirate-level procurement regulations. This document provides a structured framework for identifying, evaluating, and managing risks associated with procurement activities, ensuring alignment with UAE Federal Law No. 8 of 2017 and other relevant legislation. It includes detailed sections for various risk categories, assessment methodologies, and mitigation strategies, tailored to the UAE business environment and regulatory requirements.

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What is a Procurement Risk Assessment?

The Procurement Risk Assessment Template has been developed to address the growing need for structured risk management in procurement activities within the UAE's regulatory framework. This template serves as a crucial tool for organizations operating under UAE jurisdiction, helping them identify, assess, and mitigate procurement-related risks while ensuring compliance with Federal Law No. 8 of 2017 and other relevant regulations. It is designed to be used before initiating significant procurement activities, during supplier selection processes, and for periodic risk reviews of existing procurement arrangements. The template incorporates both mandatory requirements under UAE law and international best practices in procurement risk management, making it suitable for both government entities and private sector organizations operating in the UAE.

What sections should be included in a Procurement Risk Assessment?

1. 1. Introduction: Purpose and scope of the risk assessment template, including its alignment with UAE procurement regulations

2. 2. Procurement Project Overview: Basic information about the procurement project, including value, timeline, and strategic importance

3. 3. Risk Assessment Methodology: Explanation of the risk scoring system, assessment criteria, and evaluation process

4. 4. Supplier/Vendor Risk Assessment: Evaluation of risks related to supplier selection, capability, and stability

5. 5. Commercial Risk Assessment: Analysis of financial, pricing, and commercial terms-related risks

6. 6. Legal and Regulatory Compliance: Assessment of compliance risks with UAE laws, including Federal Law No. 8 of 2017 and other relevant regulations

7. 7. Operational Risk Assessment: Evaluation of risks related to delivery, performance, and operational aspects

8. 8. Technical Risk Assessment: Analysis of technical specifications, quality, and performance-related risks

9. 9. Risk Mitigation Strategies: Proposed measures to address identified risks and control mechanisms

10. 10. Risk Monitoring and Review: Process for ongoing monitoring of risks and periodic review requirements

What sections are optional to include in a Procurement Risk Assessment?

1. Environmental and Sustainability Risk Assessment: For procurement projects with significant environmental impact or sustainability requirements

2. Information Security Risk Assessment: For procurement involving IT systems, software, or data handling

3. Supply Chain Risk Assessment: For complex procurement involving multiple suppliers or international supply chains

4. Health and Safety Risk Assessment: For procurement involving physical works, construction, or hazardous materials

5. Political and Geographic Risk Assessment: For international procurement or projects involving multiple jurisdictions

6. Foreign Exchange Risk Assessment: For procurement involving international suppliers or foreign currency transactions

What schedules should be included in a Procurement Risk Assessment?

1. Schedule 1: Risk Assessment Matrix: Template for risk scoring and prioritization

2. Schedule 2: Risk Category Checklist: Detailed checklist for each risk category assessment

3. Schedule 3: Supplier Due Diligence Checklist: Template for supplier evaluation and verification

4. Schedule 4: Risk Mitigation Plan Template: Format for documenting specific risk mitigation actions

5. Schedule 5: Risk Assessment Review Log: Template for recording periodic risk reviews and updates

6. Appendix A: Risk Assessment Guidelines: Detailed guidance on completing the risk assessment

7. Appendix B: Regulatory Requirements Reference: Summary of relevant UAE procurement laws and regulations

8. Appendix C: Risk Assessment Examples: Sample completed risk assessments for reference

9. Appendix D: Escalation Matrix: Guidelines for risk escalation and authority levels

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Government and Public Sector

Construction and Real Estate

Oil and Gas

Healthcare

Technology and Telecommunications

Manufacturing

Financial Services

Retail and Consumer Goods

Transportation and Logistics

Energy and Utilities

Education

Defense and Security

Relevant Teams

Procurement

Risk Management

Legal

Finance

Internal Audit

Compliance

Operations

Supply Chain

Project Management

Quality Assurance

Relevant Roles

Procurement Manager

Risk Manager

Compliance Officer

Contract Manager

Supply Chain Manager

Chief Financial Officer

Legal Counsel

Project Manager

Operations Manager

Quality Assurance Manager

Internal Auditor

Procurement Director

Risk Assessment Specialist

Category Manager

Vendor Management Officer

Industries
Federal Law No. 8 of 2017: The UAE's primary procurement law for federal entities, establishing rules for government procurement, tender procedures, and contractor selection
UAE Federal Law No. 18 of 1993 (Commercial Transactions Law): Governs commercial transactions and contracts, including procurement agreements between private entities
UAE Federal Law No. 1 of 2006 (Electronic Commerce Law): Regulates electronic transactions and digital documentation in commercial dealings, including e-procurement systems
UAE Federal Law No. 19 of 2016 (Anti-Commercial Fraud Law): Addresses fraud in commercial transactions, including procurement fraud and counterfeit goods
UAE Federal Law No. 2 of 2015 (Companies Law): Relevant for understanding the legal requirements when dealing with different types of corporate entities in procurement
Abu Dhabi Procurement Law (if applicable): Local procurement regulations specific to Abu Dhabi emirate for government and semi-government entities
Dubai Government Procurement Law (if applicable): Local procurement regulations specific to Dubai emirate for government and semi-government entities
UAE Federal Law No. 4 of 2012 (Competition Law): Ensures fair competition in procurement processes and prevents anti-competitive practices
UAE Federal Law No. 7 of 2017 (Tax Procedures Law): Relevant for VAT considerations in procurement transactions and documentation requirements
UAE Federal Decree Law No. 33 of 2021 (Labor Law): Relevant for procurement involving manpower supply or service contracts with labor components
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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