Everstream Analytics strategic risk scores combine 49 vetted external risk indices. You can add these to your own supplier data. Together, they rate how likely each supplier site is to face disruption and your risk exposure. Every score shows its source, method, and weighting, so you can explain it to anyone who asks.
If you lead procurement, supply chain, or risk, supplier scores shape real decisions. They influence which suppliers win business, where you hold extra inventory, and which suppliers require remediation, or potentially offboarding.
What is a strategic risk score?
A strategic risk score estimates how likely a supplier location is to be disrupted in the future. It looks ahead, not at what is happening today.
That sets it apart from an incident score, which tracks live threats such as a strike, a fire, or an approaching storm. Everstream Analytics uses both scores for every site. The incident score helps you respond. The strategic score helps you plan, so you face fewer incidents in the first place.
In simple terms: incident scores tell you where to react. Strategic scores tell you where to build resilience.
How is a strategic supplier scorecard calculated?
Everstream builds the supplier scorecard in four steps.
- Rate each risk. Every risk gets a score on a 25-point scale, banded as low, medium, or high. Higher numbers mean greater risk exposure.
- Match the method to the risk. Certain risks can be understood from historical data, such as customs delays or recurring transportation disruption. Some need expert input, such as long-range climate models, to understand how risks such as water scarcity could change over the next 50 to 100 years.
- Apply your weights. Everstream Analytics provides a combination of the risks for an overall supply chain disruption assessment. However, you have full control in how you apply these. This means the same risk can be weighted differently for different use cases.
- Roll it up. Everstream combines the weighted scores into one strategic risk score per site. You can then aggregate by company, region, and country.
Everstream Analytics uses exponentially weighted averaging rather than a simple mean. A plain average can bury one severe risk under several mild ones. This method lets a single high score lift the total. A supplier on a flood plain can’t hide behind a clean audit.
Figure 1: An exponentially weighted averaging technique that ensures high individual scores have more impact on the composite number.
What makes a risk score defensible?
A defensible score is one you can trace from the headline number back to the raw data. Everstream builds traceability at three levels.
Every input shows its work. Click any risk in the platform to see its source, update frequency, granularity, methodology, and scale.
You own the weights. Because you set the model, you can justify every percentage in it.
Expertise. Everstream Analytics has a hybrid approach to risk scoring. This combines the best available data on each risk with inputs from risk analysis specialists. These experts have deep knowledge of specific regions and risk areas.
What does this look like in practice?
Scores change over time. Imagine a Tier-1 electronics supplier in Southeast Asia moves from medium to high risk. Your CFO wants to know why before approving a dual-sourcing budget.
You open the scorecard and drill down. The score has changed because civil unrest is growing in the region where your supplier is located. The source, method, and update date are clearly displayed. Currently, the supplier’s on-time delivery is strong. The problem is location, not performance.
That changes the conversation. Instead of debating the number, you discuss the response. You could qualify a second site, hold more buffer stock, or ask for the supplier’s business continuity plan should violence break out.
Risk scores for issues like civil unrest are updated weekly. Longer term risks, such as the potential for flooding are updated yearly. That is because these types of risks are slower moving.
However, you would still want to know about changes to slower moving risk scores, particularly if the risk is increasing year over year. This will allow you to prioritize supplier outreach to confirm that they have or are planning to build flooding barriers.
