Value Risk Matrix (VRM)

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What is Value Risk Matrix (VRM)?

The value/risk matrix (VRM) is a tool that considers value and risk to help you determine the level of complexity associated with:

  • a contract or group of contracts (helps with contract management)
  • the sourcing of specific goods/services (helps with developing a sourcing strategy)
  • a category of goods or services (helps with developing category management plans).

The level of complexity is assessed as either:

  • routine—low value, low risk
  • leveraged—high value, low risk
  • focused—low value, high risk
  • strategic—high value, high risk [1]

See Also