Young, (2011) expressed that the risk base is set on the understanding of the bound terms or clause identified in the procurement contract.
He further stated in his write up that this is a reason to carefully review tenders that it is in the business best interest. He identifies ten risks as follows:
1) Impact of a breach of contract: In such a clause that holds that such breach of contract be charged to self can be costly especially if it's a system error
2) Delivery delay: Although systems have been tied into shipping systems for tracking purposes, they are nevertheless not in control of the shipping activity and the vendor might not have control on such up to its effect on causing a project delay
3) Hole clauses: It is can be cumbersome for a vendor to closely monitor documents that are attached to electronic transactions. Such should be printed out and reviewed closely to avoid unwanted circumstances
4) Disputes over payment: Systems should be built to access business cash flow in real time to avoid billing risks, this opens the business to sharing personal financial information
5) Disputes over tangibles or labor cost: The system in most case are data entry setup and cannot recognise if the business has been billed wrongly outside the terms of the contract.
QUESTION: Some risks that are associated with e-procurement has extracted from the work of Young (2011) in different aspects such as those related in breach of contract, delivery delay, hole clauses, payment, and labor cost.
If you ask to rank the aforementioned risks in order of potential impact and likelihood from 1-5 what will be your response?