2026 Annual Report - Risk Management

Beekeepers in protective suits and veiled hats work with a hive.

Risk Management

Effective risk management is crucial for navigating uncertainties that can impact the University. It involves ensuring supply chain resilience, controlling costs, adhering to compliance and regulatory requirements, managing supplier relationships, fostering innovation, maintaining financial stability, and promoting long-term sustainability.

Campus Contributions Towards Risk Management

UC Davis
UC Irvine
UC Merced
UC Riverside
UC San Diego
UC Santa Barbara
UC Santa Cruz
UCLA
UCSF
Systemwide

Container ships in port with Tariffs Ahead sign

Systemwide

Turning Tariff Pressure into Systemwide Action

Systemwide Procurement (SWP) helps campuses manage tariff-related costs and supply chain risks through education, expert guidance, and real-time monitoring. SWP hosted a three-part Procurement Exchange webinar series focused on pricing impacts, mitigation strategies, research imports, customs requirements, duty exemptions, trade agreements, and vendor relationships. The sessions brought together UC experts and American Cargoservice to give finance and procurement professionals practical steps for avoiding unnecessary costs and delays, improving documentation, and responding to rapidly changing trade conditions. SWP also launched a Tariff Impact Tracker that catalogs known and emerging effects on Facilities, IT, and Life Sciences commodities. Together, these resources give procurement teams current information, shared strategies, and tools to make better sourcing decisions, prepare for disruptions, and reduce the financial and operational impact of tariffs across the UC system.

A man holding a bottle of alcohol in one hand, his other hand is showing a payment confirmation on his phone

UC Davis

Modernizing Event Compliance Through CES Routing and DocuSign

UC Davis strengthened event governance through clearer Conference and Event Services routing and a new digital alcohol-permit process. Non-university groups using campus facilities or Housing must work through CES so eligibility, venue, rates, facility agreements, insurance, and liability responsibilities are addressed and tracked. In May 2026, the Permit to Serve Alcoholic Beverages moved from paper signatures to DocuSign, allowing requesters to track status, reopen completed permits, and clone similar submissions. The existing 10-day submission deadline and post-approval change controls remain.

UC Irvine

Strengthening UCIBuy+ Validation and PALCard Workflows

UC Irvine strengthened UCIBuy+ controls in a May 2026 release focused on PALCard exceptions, data validation, and governance. Certified Unit Information Security Lead review can now bypass central OIT InfoSec routing for eligible low-risk P1/P2 items, reducing duplicate approvals. New warnings flag mismatches between requisition data and supplier, Small Business, Export Control, InfoSec, Privacy, Accessibility, and Covered Services responses. UCI also restricted personal defaults for critical compliance fields and standardized after-the-fact PO reasons. The release pairs faster low-risk routing with stronger data consistency.

UC Irvine

Embedding Security, Privacy, Accessibility, and Insurance Into IT Purchasing

UC Irvine embedded security, privacy, accessibility, insurance, and contracting controls into software and IT purchasing through UCIBuy+. Suppliers handling UCI data or systems now undergo an OIT security review with coordinated privacy assessment, while digital products must address WCAG 2.1 Level AA accessibility. For higher-risk P3/P4 software, departments upload a Purchase Agreement. Cyber liability requirements scale with data risk, from $500,000 for P1 to $10 million for P4, with Risk Services and Campus Counsel involved when suppliers cannot meet requirements.

UC Irvine

Strengthening Covered Services Compliance at UCI

During FY26, UC Irvine Procurement Services strengthened Covered Services compliance by translating systemwide requirements into practical campus guidance. Procurement helped departments identify when services require review and contracting before work begins, reinforced approved purchasing processes, and incorporated Covered Services requirements into broader purchasing support. Moving compliance earlier in the process helps UCI identify potential issues before services are performed while giving departments clearer direction for engaging suppliers appropriately.

UCLA

Building the Procurement Foundation for UCLA's 2028 Olympic and Paralympic Village

As UCLA prepares to host the 2028 Olympic and Paralympic Village, Procurement is building the purchasing framework needed to support meals, lodging, training venues, and other services for thousands of athletes and delegation staff. In FY26, the team began developing campus-specific approval workflows, financial controls, and modified procurement processes that can meet the Village's unique demands while protecting day-to-day campus operations. The work establishes an early foundation for transparent, accountable, and responsive procurement as planning accelerates toward 2028.

UCLA

Supporting Covered Services Compliance through Smarter Workflows

Across more than 800 UCLA departments, consistent oversight of covered services can be complex. In FY26, UCLA Procurement partnered with Labor Relations and Health Human Resources to embed Article 5 compliance reviews directly into purchasing workflows. Covered-services requisitions are now automatically routed to the appropriate subject-matter experts without manual intervention, helping reduce potential policy violations, strengthen shared governance across campus and UCLA Health, and move compliance review earlier in the purchasing process.

UC Merced

Building Partnerships to Deliver Solutions and Support Student Success

Five days before UC Merced's Timber Strong Build Competition, Procurement & Contracting Services received an urgent request for a recreational-space rental agreement with Merced Irrigation District and approval of nonstandard insurance coverage. Recognizing the importance of the event for students, Procurement immediately coordinated contract negotiations while partnering with Risk Management to expedite review, approvals, and certificate issuance. All requirements were completed in time for the competition, and UC Merced students went on to win the event against UC Berkeley. This outcome demonstrates how strong campus and community relationships, clear communication, and a solution-oriented mindset helps Procurement navigate complex requirements and deliver results under intense time constraints.

UC Riverside

Coordinating Computer Purchasing Amid Global Supply Constraints

UC Riverside Procurement and Information Technology Solutions coordinated campus guidance in response to a global shortage of memory and storage chips. Departments were advised to expect higher hardware prices, lead times of approximately 6-14 weeks, possible backorders, and model substitutions across manufacturers. The teams encouraged earlier ordering, broader planning with faculty and researchers, and consideration of approved alternatives when standard devices are unavailable. By translating market conditions into timely purchasing guidance, UCR is helping departments manage budget exposure, availability risk, and operational timelines during a volatile supply environment.

UC San Diego

UC San Diego Protects the University & Streamlines the Hospitality Contract Review Process

UC San Diego helped design and launch a purpose-built Hospitality Contract Addendum that makes UC-compliant terms the governing standard for venue and event-services agreements. Previously, the hospitality buyer manually reviewed and redlined each supplier contract, a time-intensive process that often started with limited protections for the University. The addendum establishes consistent provisions for payment, deposits, cancellations, indemnity, liability, pandemic protections, intellectual property, and other key risks. More than 90% of suppliers have accepted the approach, and the standardized process has saved nearly $37,000 annually in buyer time.

UC Santa Barbara

Live-Event Safety Compliance Now Built Into Procurement Workflow

UC Santa Barbara translated new live-event safety requirements into a repeatable procurement workflow. Vendors providing equipment rental, installation, or operation at UC venues must certify applicable safety training for each event and requisition. Departments route requests through Gateway Restricted Items, giving Procurement and Environmental Health & Safety a shared review point for participating employees, subcontractors, and training documentation. Follow-up guidance and a Cal/OSHA FAQ supported the transition. The new approach embeds compliance before work begins and helps reduce operational and legal risk.

UCSF

UCSF's ChemCentral Program Wins National Innovation Award

UCSF’s ChemCentral Program won the University Logistics and Supply Chain Association’s (ULSCA) 2025 Mark Teragawa Innovation Award. UCSF’s winning submission, “Centralized Chemical Distribution Program,” impressed the selection committee with its innovative approach to managing hazardous chemical deliveries and its transformative impact on operational efficiency, workforce productivity, and researcher support. The Mark Teragawa Innovation Award is for initiatives that exemplify excellence in supply chain best practices, strategic solutions, and advancing university missions.

UC Santa Cruz

Embedding Cybersecurity Review Before Sensitive-Data Purchases

UC Santa Cruz embedded vendor cybersecurity review at the beginning of procurements involving P3 or P4 data. Before submitting a CruzBuy requisition, units complete a ServiceNow Vendor Risk Assessment and Whistic intake, then Information Technology Services assigns a risk rating that becomes part of the purchasing record. The process also applies to change orders that introduce new technology or artificial-intelligence features, increase the protection level, or materially change data handling. Designed jointly by Procurement, Business Contracts, and ITS, the workflow strengthens data protection and reduces the likelihood of late-stage security delays.

UC Santa Cruz

Clarifying Covered Transportation Purchasing With TAPS and HR

UC Santa Cruz Procurement and Human Resources clarified how departments purchase covered transportation services. Specified campus and under-100-mile bus trips must first be referred to Transportation and Parking Services for right of refusal; when TAPS cannot support the need, the request proceeds through the Contracting Out process. Covered and non-covered trips must be submitted separately. The shared routing model translates labor and covered-services requirements into a clearer operational process, helping departments use internal capacity appropriately and reducing the risk of misrouted or noncompliant requests.

SWP - Economic Impact & Policy

Opening the UC Terms & Conditions Archive

Systemwide Procurement turned a recurring access problem into a practical risk-management improvement by making UC’s historical Terms and Conditions archive publicly available. Legal and procurement teams, as well as suppliers, often need to confirm which contract language applied when an older agreement was signed or amended. Previously, the password-protected archive could slow that review and create uncertainty about the correct version. Public access now gives suppliers and UC teams a consistent point of reference for prior Terms and Conditions. This supports faster contract interpretation, more accurate change reviews, and clearer conversations with suppliers. It also reduces the risk of relying on outdated or incorrect language when evaluating obligations, resolving questions, or planning amendments. By improving access to historical records, UC strengthened transparency and helped teams make timely, well-informed decisions while protecting the university’s contractual interests.

SWP - Economic Impact & Policy

Updated Low-Value Purchase Guidance

Systemwide Procurement is helping UC manage risk by turning complex policy requirements into practical guidance that departments can use. In partnership with the UC Workforce Commitment Office, the team developed standard guidance for low-value purchases and retail transactions involving covered services. The guidance clarifies that UC’s contracting-out requirements apply regardless of purchase amount or payment method, including purchase orders, P-Cards, and Travel & Expense. It also directs departments to use UC employees for covered services unless an allowable exception is approved in advance by the location’s Labor and Employee Relations team. By closing a potential compliance gap in routine, low-dollar transactions, Systemwide Procurement is promoting more consistent decisions across UC locations. This work reflects a broader commitment to identifying risk early, strengthening shared practices, and giving teams clear tools to protect UC while meeting day-to-day operational needs.

SWP - Economic Impact & Policy

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Keeping UC procurement policy current and defensible

Systemwide Procurement strengthened UC’s primary procurement policy, BUS-43, to help campuses manage compliance, financial, and operational risk with greater consistency. The latest update aligns federal purchasing thresholds with current requirements, directs capital equipment decisions to BUS-29, and connects micro-purchase guidance directly to the Federal Funds Checklist. It also clarifies card payment language, supplier qualification requirements, and federal planning and reporting while removing outdated references and repairing policy links. These changes reduce the likelihood that teams will rely on obsolete thresholds, misclassify purchases, miss documentation requirements, or develop inconsistent local practices. Shaped through stakeholder input and systemwide review, the revised policy gives procurement professionals clearer direction before commitments are made. By keeping policy aligned with current rules and real workflows, Systemwide Procurement is helping UC prevent problems earlier and make decisions that are efficient, consistent, and defensible.

SWP - Economic Impact & Policy

graphic representation of different levels of risk: low, medium, high

Risk Matrix Makes Insurance Decisions Easier

UC Risk Services collaborated with Systemwide Procurement to ease contract risk evaluations by launching the BUS-63 Risk Matrix, an online decision tool supported by offline versions for flexible use. The matrix gives departments a consistent way to assess activities involving vendors, contractors, and external facility users and determine when a Certificate of Insurance is required. Low-risk engagements can move forward without unnecessary paperwork, while moderate- and high-risk activities receive clearer insurance and risk-transfer protections. To help teams apply the tool confidently, Systemwide Procurement also produced a single-episode podcast explaining the risk thresholds and how to use the matrix. Together, these resources support faster contracting, more consistent decisions, and stronger compliance with BUS-63, while preserving local Risk Management review for circumstances requiring professional judgment. This approach helps UC focus its controls where risk is greatest while making routine work easier to complete.

Strategic Priorities

UC Procurement is committed to the five strategic priorities below. Through dedication to these priorities, we strive to empower our campuses, foster innovation, and shape a more sustainable and equitable future. This Annual Report is organized by these five priorities – click any card to delve into our progress in these areas:

Risk Management