Video Walkthrough
What is a risk
Risk is the probability that a future incident will occur, and is driven by the inherent risk of the context the supplier is operating in, e.g. location and industry, and past incidents the supplier has been exposed to. The risk is assessed per parameter (e.g. child labor) and per supplier. The risk assessment logic will default on the most conservative option when multiple contexts are mapped to a supplier - read more about the logic.- That also means that if you want a more granular assessment and compare and contrast e.g. riskiness of different supplier sites, then those should be created as separate entities/suppliers. Otherwise, the most risky site under a supplier will dictate the supplier’s overall risk level.
- Read more about managing risk managing risk.
Parameters covered for risk assessment
All relevant parameters for risk assessment are covered by our risk data sources. However note that some parameters are not well suited for a risk assessment as they’re inherently positive, e.g. ‘emission reduction targets’. See a comprehensive overview below, but note that this overview is currently manually updated and may be trailing behind the reality:| Parameter group | Parameters covered | Parameters not covered |
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| Social |
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| Environmental |
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| Governance |
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| Other |
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Risk data and indicators
A risk is derived from both incidents and inherent risk. Read more about incidents Inherent risk is based on risk data indicators that inform on the risk of a country or location. Go to data sources → risk for a full overview of the data sources active on your account.Industry risks
Location risks
Logic when multiple risk indicators are present
Multiple indicators on same context:- When they’re exactly the same:
- When one is more precise: