As discussed in class, buyers are always concerned if a supplier fails to fulfill their obligations in complex and extensive projects. Such situations can result in significant damages or losses for manufacturing industries. To minimize the risk of encountering problems, buyers need to conduct a thorough analysis of the risks associated with doing business with suppliers for strategic projects. Generally, the following three categories of risk must be analyzed and distinguished: Technical risk: This refers to the risk associated with the technical capabilities and expertise of the supplier. It includes factors such as the supplier's technological infrastructure, equipment, skills, and capacity to deliver the required goods or services. Quality risk: Quality risk pertains to the potential for substandard or inconsistent quality of the supplier's products or services. It encompasses aspects like product defects, compliance with specifications, adherence to quality standards, and the supplier's quality control processes. Financial risk: Financial risk focuses on the supplier's financial stability and ability to meet their contractual obligations. It involves assessing factors such as the supplier's financial health, liquidity, creditworthiness, and potential for bankruptcy or default. In the case of large and complex projects, the risks can be substantial, necessitating additional measures. These evaluations should include regular preventive audits and controls to ensure ongoing risk management. To provide guidelines for companies to avoid these risks, it is essential to conduct extensive research and study scholarly articles and references. Here is an outline of steps to follow: Conduct a literature review: Search for scholarly articles and references that discuss risk management in supplier relationships, particularly in the context of complex projects. Pay attention to articles that specifically address technical, quality, and financial risks. Analyze each risk category: a. Technical risk: Identify the key factors that contribute to technical risk and their impact on project outcomes. Consider factors like supplier capabilities, technology infrastructure, expertise, and capacity. b. Quality risk: Examine the factors influencing quality risk, including product defects, compliance, and quality control processes. Explore methods for assessing and monitoring supplier quality. c. Financial risk: Investigate the indicators of financial risk, such as financial health, liquidity, and creditworthiness. Look for strategies to evaluate supplier financial stability and mitigate financial risks. Provide guidelines for future action: a. Based on your research, propose guidelines that companies can follow to mitigate each risk category. These guidelines may include pre-qualification assessments, periodic audits, performance monitoring, and diversification of suppliers. b. Emphasize the importance of proactive risk management, early identification of potential risks, and establishing contingency plans. Apply the Kraljic model and Pareto Diagram: a. Explain the Kraljic model, which categorizes parts and raw materials based on their strategic importance and supply market complexity. Demonstrate how this model can assist in identifying high-risk suppliers and prioritizing risk management efforts. b. Describe the Pareto Diagram technique, which uses the 80/20 rule to identify the most significant risks. Illustrate how an organization can apply this technique to prioritize and allocate resources effectively. Ensure proper APA referencing: a. Cite the scholarly articles and references used in your research according to the APA (American Psychological Association) style guidelines. Include in-text citations and a comprehensive reference list at the end of the report. Give me detail long explanation