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Informed 365 Supplier Risk Index (ISRI) - How is it calculated?

Bryton Ale avatar
Written by Bryton Ale
Updated over 7 months ago

👤This feature is available for the following applications:

  • Standalone application ✅

  • Consortium application ✅

🔐This feature is available for the following user/s:

  • Administrator ✅

  • Application Member ✅

  • Application User with “Review” ability ❌

  • Application User ❌

📝 Purpose

The ISRI Risk is derived by averaging the Country and Industry Risk values and rounding the result to the nearest whole number.

🛠️ Prerequisites

In order to calculate ISRI risk, the organisation profile must have both country and industry set. If either or both of these are missing values, an ISRI risk cannot be calculated.

Formula:
ISRI Risk = ROUND((Country Risk + Industry Risk) / 2)

Each risk is rated as follows:
1 = Very Low
2 = Low
3 = Medium
4 = High
5 = Very High

Please note that if either the Country Risk and/or Industry Risk data is missing, then the ISRI Risk cannot be calculated, and no rating will be displayed.

  • Example A:

    • Country Risk is (High) = 4

    • Industry Risk is (Low) = 2

    • Then the ISRI Risk = ROUND((4 + 2) / 2) = 3 (Medium).

  • Example B:

    • Country Risk is (Very High) = 5

    • Industry Risk is (Medium) = 3

    • Then the ISRI Risk = ROUND((5 + 3) / 2) = 4 (High).

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