Value Risk Matrix (VRM)
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