(1) What is the Company Likelihood Score?
The Company Likelihood Score represents the probability that a given ESG risk may occur for a supplier, facility, or company context.
As defined in the platform tooltip: “Likelihood measures the probability that a given risk will occur. Likelihood can be expressed using qualitative terms (Extreme, High, Medium, Low or Negligible), as a percent probability, or as a frequency.”
Retraced uses a numeric scale from 1 to 5, where higher values indicate higher probability of occurrence.
Important:
The Company Likelihood Score does not influence the Gross Score. Gross Score reflects the country-level baseline from the Risk Landscape.
Likelihood is part of the company-specific assessment, used to contextualize risk at the supplier level based on the results from the risk rules for each assessment.
Where Likelihood is used:
In the risk assessment, when you evaluate a supplier.
In the Prioritization Heatmap, as one axis of the risk positioning.
Together with Severity, it forms the Priority Score.
Role in the scoring system:
Priority score = Likelihood x Severity
This is the standard definition for our templates (severity = 1), but you can define specific risk rules to new risk assessments according to your needs.
(2) What is the Severity Score?
The Severity Score reflects how serious the impact would be if the risk materializes.
As defined in the platform tooltip: “Severity measures the extent of the damage to the institution, its people, and its goals and objectives resulting from a risk event occurring.”
Retraced uses a numeric scale from 1 (low impact) to 5 (highest impact).
Important:
Severity applies to company-level risk assessments.
It appears in the Prioritization Heatmap, as one axis of the risk positioning.
Displayed in the Assessment and Prioritization tabs under the “Your Risk Assessments” space from the Risk Assessments section.
It is used together with Likelihood to contextualize risk priority. You can set severity as you need it to reflect your compliance standards.
(3) What is the Priority Score?
The Priority Score shows how urgent or critical a risk is for a supplier, based on company-level evaluation. It shows the company overall level of ESG risk across other assessed suppliers in a risk assessment. Each individual Priority Score reflects the likelihood and severity of risks, providing an aggregate risk exposure.
Priority score = Likelihood x Severity
This is the standard definition for our templates (severity = 1), but you can define specific risk rules to new risk assessments according to your needs.
Where it appears:
When checking a risk assessment, “Assessed Companies” provide only the average priority score (see explanation below). By clicking in one specific company assessed, you can then check the priority score given to each risk factor for the chosen company, which ultimately composes the average priority score.
Used to guide risk-based due diligence decisions
(4) What is the Average Priority Score?
The Average Priority Score summarizes the company’s overall risk profile across all assessed suppliers or facilities.
It is the mean of all Priority Scores defined, each based on the Priority formula (Likelihood × Severity). With the values found for each risk factor, the average priority score then represents the average value among all priority scores.
Where it appears:
In “Assessed Companies” and “Prioritization” tabs when choosing a performed risk assessment. The “Report Priority Heatmap” section under “Prioritization” tab shows a company-by-company overview of average priority scores.
Average PS determines supplier positioning in the Prioritization Heatmap
PS contributes to a general understanding of portfolio-level risk exposure