How Supplier Risk is calculated

Article author
Laura Florence
  • Created

Supplier Risk is assessed by supplier-provided answers to risk and compliance questions, including the topic areas of Ethics & Integrity, Information Security, Data Privacy, and Workforce & Labor. 

An Overall Risk Score for a supplier is based on the highest assessed-risk within a compliance topic area. If only one topic is assessed as high risk then the supplier would be considered a high-risk supplier overall. This risk score takes into consideration the most recent completed risk score for each topic. Both automated and user assessments affect the overall risk score.

For topics segregated by products and services, the same logic applies for the overall supplier risk  assessment. This means that the highest score is displayed overall score for that specific topic area.

 

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