Supplier Risk-Value Matrix

The Supplier Risk-Value Matrix is a 2x2 matrix used to assess the risk and value of potential suppliers. It is used to prioritize suppliers and identify areas for improvement.

At a very high level, the Supplier Risk-Value Matrix is used in the context of business, finance, risk management.

Supplier Risk-Value Matrix quadrant descriptions, including examples
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What is the Supplier Risk-Value Matrix?

A visual explanation is shown in the image above. The Supplier Risk-Value Matrix can be described as a matrix with the following quadrants:

  1. High Risk, High Value: Suppliers who have a high risk of failure but offer a high potential value.
  2. High Risk, Low Value: Suppliers who have a high risk of failure and offer little value.
  3. Low Risk, High Value: Suppliers who have a low risk of failure and offer a high potential value.
  4. Low Risk, Low Value: Suppliers who have a low risk of failure but offer little value.

What is the purpose of the Supplier Risk-Value Matrix?

The Supplier Risk-Value Matrix is a 2x2 matrix used to assess the risk and value of potential suppliers. It is used to prioritize suppliers and identify areas for improvement. The matrix is divided into four quadrants, each representing a different combination of risk and value. The four quadrants are:

  • High Risk, High Value
  • High Risk, Low Value
  • Low Risk, High Value
  • Low Risk, Low Value

The High Risk, High Value quadrant is for suppliers who have a high risk of failure but offer a high potential value. These suppliers should be monitored closely and given extra attention. The High Risk, Low Value quadrant is for suppliers who have a high risk of failure and offer little value. These suppliers should be avoided or replaced. The Low Risk, High Value quadrant is for suppliers who have a low risk of failure and offer a high potential value. These suppliers should be prioritized and given extra attention. The Low Risk, Low Value quadrant is for suppliers who have a low risk of failure but offer little value. These suppliers should be monitored, but not given extra attention.


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What templates are related to Supplier Risk-Value Matrix?

The following templates can also be categorized as business, finance, risk management and are therefore related to Supplier Risk-Value Matrix: AIDA Marketing Matrix, Affiliate Marketing Matrix, Agile Capability-Value Alignment Matrix, Agile Scaling Matrix, Ansoff Matrix, Asset Allocation Matrix, BCG Matrix, Brand Affinity Matrix. You can browse them using the menu above.

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