Risk Management Strategies and Supplier Selection in Public Sector Procurement
Evidence from the Lower Benue River Basin Development Authority, Nigeria
DOI:
https://doi.org/10.16930/2237-766220263652Keywords:
Risk management, Risk retention, Risk sharing, Supplier selection, Public procurementAbstract
This study investigates the effect of risk management strategies - specifically risk retention and risk sharing - on supplier selection in the Lower Benue River Basin Development Authority (LBRBDA), Makurdi. Motivated by the growing emphasis on effective supplier selection in public procurement and the need to mitigate procurement-related risks, the study adopts a correlational survey design. A census approach was employed due to the manageable population size (N = 101), with 86 valid responses received, representing an 85.1% response rate. Data were collected using structured questionnaires and analyzed using descriptive statistics and multiple regression analysis. Findings reveal that both risk retention and risk sharing significantly influence supplier selection, with risk sharing having a more pronounced impact. The results highlight the importance of adopting a strategic and collaborative approach to risk management in public procurement. It is concluded that while risk retention facilitates internal operational flexibility, risk sharing enhances trust and supplier performance. The study recommends institutionalizing risk-sharing practices and applying risk retention selectively within a comprehensive risk governance framework.
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