Where procurement risk actually concentrates
The purchases that damage organisations are rarely the biggest ones, which get scrutiny automatically. They are the mid-sized contracts that combine long duration, deep embedding and a first-time buying team: a mid-market manufacturer weighing two ERP quotes carries more real exposure than a far larger deal for a substitutable commodity. Value is only one of ten factors here, and often not the decisive one.
When to run the calculator
The most useful moment is after shortlisting and before final negotiation, when the requirements are real but the terms are still movable. Run it again if the scope changes materially during negotiation, because a contract that grows a systems-integration tail or doubles its duration is no longer the purchase you originally assessed.
Who should score the purchase
- Procurement leaders deciding where to spend limited review capacity across a pipeline of deals.
- Budget owners about to sign a contract their function has never bought before.
- CFOs and finance business partners asked to approve a purchase they had no part in shaping.
What the number means
Each answer contributes 0, 5 or 10 points towards a risk total normalised to 100, where higher means more reason for independent review before signature. The bands are deliberately about review priority rather than deal quality: a high score does not say the purchase is wrong, it says signing it unexamined would be.