The methodology applied follows a risk-based approach, incorporating country risk, sector exposure, and supplier-specific indicators. The results are used to prioritise due diligence efforts in line with the OECD Guidelines for Responsible Business Conduct. The Overall Score (360° Risk Score) used by Prewave consolidates all available information, combining Peer Scores and Alert Scores. Additionally, if activated, the Self-Assessment Score and Scoring from external data sources can influence the 360° Risk Score. This score encompasses both abstract and concrete risks providing a comprehensive and dynamic assessment of a supplier's risk profile. It is a constantly changing value influenced by various factors, calculated through a non-linear and weighted algorithm. The key factors included in the calculation are: ● Public Media Appearance: The frequency of news articles related to the supplier, measured by the number of articles created daily. ● Timestamp: The timing of the alert, considering how recent the event is. ● Criticality: The priority level assigned to the alert, reflecting its importance and potential impact. ● Recurrence: The frequency of similar events occurring in the past.
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The scoring process is conducted within the specific group the event type belongs to. All event types within a group are calculated into the group score, and all group scores are aggregated into the overall score.
Risk distribution Based on the analysis of 747 suppliers the below risk profiles were identified: ● High priority: 2 suppliers ● Medium priority: 211 suppliers ● Low priority: 494 suppliers ● No priority assigned: 40 suppliers
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