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

See Also

• Business Case