Risk Factors In Purchasing

Risk May be defined As “The exposure to chance of injury or loss; a hazard or dangerous chance”.

In purchasing, the focus is often not on risk but keenly focused on price. The conventional wisdom dictates that the lowest price be obtained. The risk factors in purchasing therefore include:

i. Risk of buying the wrong products.

ii.Purchasing and installing an item: that is meant to last several years, generates a feeling of risk because the feeling of “what if it does not work” is disturbing.

iii. Unfamiliarity with the seller: A First-time buyer, one who has not bought the products before, or has not bought from a company or shop before.