Describing Risk Exposure

A supplier's risk exposure is a numerical value from 1.00-100.00 that designates the supplier's level of risk, with 100.00 being the riskiest and 1.00 the least risky.

• If a supplier's risk exposure shows as unknown, that means there is not yet enough information to calculate the exposure.

There are a number of different factors that affect a supplier's risk exposure, and those factors are weighted based on your company's criteria, including:

• News items about the supplier
• Corporate information about the supplier
• Geographical data on natural disasters
• Compliance information about the supplier, including legal, regulatory, and environmental risks
• Risk data associated with the supplier's country profile
• Structured risk information based on the supplier's corporate hierarchy
• Supplier relationship information such as internal ratings, spend volume, and strategic or preferred supplier status

Regulatory & legal

• Sanctions and watch lists
• Bribery and corruption
• Legal
• IT security
• Fraud
• Anticompetitive behavior
• Corporate crime

Environmental & social

• Human rights
• Labor issues
• Health and safety
• Environmental issues
• Conflict minerals
• Unethical practice
• Decertification

Financial

• Bankruptcy
• Insolvency
• Mergers and acquisitions
• Divestiture
• Credit rating downgrade
• Downsizing
• Liquidation
• Tax issue

Operational

• Natural disasters and accidents
• Plant disruption or shutdown
• Labor issues
• Product issues
• Project delays

SAP Ariba Supplier Risk aggregates risk-related data from several content and service providers.

• Information from default providers is included with your solution license.
• Information from optional providers is available if you set up a license with them independently and then register your license data in SAP Ariba Supplier Risk.

Supplier Risk Manager users can view a list of available content and service providers (default and optional) from the Supplier risk administration area, which is accessible from the User settings and configuration link on the Supplier Risk dashboard.

As of the SAP Ariba 2008 release, the following third-party providers are available in SAP Ariba Supplier Risk:

Default

• Adverse media
  • Semantic Visions
• Corporate data enrichment
  • Database with → 350M records
• Country risk
  • World Economic Forum
• Natural disasters
  • Global Disaster Alert and Coordination System

Optional

• Financial
  • Bureau van Dijk
  • Dun & Bradstreet
  • RapidRatings
• Environmental & social
  • EcoVadis
  • Made in a Free World
• Compliance
  • Exiger

Additional details about third-party providers and the information they provide can be found in:

• SAP App Center
  • You can search for providers by name.
• The Content and service providers area in Supplier risk administration
  • You must be a Supplier Risk Manager user to access the Content and service providers area.