Term	Description
Agile	Approach for rallying team members to release prototypes or products using practices, ceremonies and techniques that elicit stakeholder input and rally resources that can adapt to changing conditions.
ARB	Architecture Review Board.
BAFO	Best and final offer.
Beta	A risk metric for volatility of individual member of portfolio relative to overall market (e.g., S&P 500 = 1). Beta for a security could be one of several meaningful indicators that reflect a supplier’s emerging technologies, products or future free cash flow and profits.
CAPM	Capital asset pricing model can help minimize risk through diversification and reduced correlation among investments. CAPM considers the risk versus reward tradeoff and asset sensitivity to non-diversifiable and diversifiable risks. Expected gain = Risk free rate + (B multiplied by (RM-RF) and considers the beta volatility, as well as the projected gain of a risk-free asset. Investors can build investment portfolios to maximize expected gain for levels of risk tolerance, or opportunistically identify over-valued and under-valued choices.
Compliance	Regulatory compliance is based on legislative or legal mandates directed by governing bodies. Organizational compliance ensures members adhere to their internal compliance structure and procedures.
Growth Matrix	Growth Matrix was developed by the Boston Consulting Group in 1970 to help analyze product lines. The matrix plots rankings of products or business units based on growth rates and share positions. The products are depicted as Cash Cows, Dogs, Question Marks and Stars. Variations on the matrix can depict items to reflect relative size of market cap, annual revenue, annual spend, etc.
KPI	Key Performance Indicator.
PPM	Project Portfolio Management. Also known as Program Portfolio Management.
Portfolio Variance	Portfolio variance measures a portfolio's overall risk and is sometimes represented as the portfolio's standard deviation squared. Portfolio variance takes into account the weights and variances of each investment in a portfolio as well as their co-variances.
Procurement	Procurement and sourcing functions perform acquisition of goods and services needed by the organization.
Program Management	Project-tracking, project development and resource management comprising multiple projects within a program.
Risk	Risk can be described as variance that an investment's actual return over a specific period, is lower than expected.
SPM	Supplier Portfolio Management.
Strategic Sourcing	Strategic sourcing is a process to enable efficiencies across spend categories, minimize supply risks with better supplier selection, and provide pricing and forecasting visibility. Strategic sourcing considers suppliers as key partners for building sustained collaboration and efficiencies.
Supplier Management	Supplier, provider, enabler, business partner is generally defined as equivalent in this document; Suppliers are defined in this document as offerers/providers for products and services for sale publicly to organizations.
Supply Chain	Supply Chain handles transactions that occur end-to-end in sourcing, producing, delivery and servicing of customers.
SOC	System and Organization Controls.
TCO	Total cost of ownership.
Value at Risk	Value at Risk quantifies the risk of potential losses for an investment. This metric can be assessed by variance-covariance and Monte Carlo methods. Organizations use VaR modeling to assess firm-wide risk due to the potential for independent teams to unintentionally create highly correlated assets which are under-diversified.