In today's global business environment, organizations must assess and mitigate risks effectively to maintain ethical and responsible operations. The RISK SAQ scoring methodology is important in evaluating an organization’s risk exposure across multiple domains. This guide will help you understand how the Risk SAQ Score is calculated, what factors influence it, and how to interpret the results to strengthen compliance and risk management strategies.

• For a detailed scoring methodology, visit the official SAQ scoring guide: How is the Risk SAQ Scored?

What is the Risk SAQ Score?

The Risk SAQ Score evaluates an organization’s risk profile based on responses to the Self-Assessment Questionnaire. It helps businesses identify vulnerabilities in governance, labor practices, forced labor risks, and supplier relationships. The scoring system integrates quantitative and qualitative assessment metrics for comprehensive risk analysis.

Key Components of the SAQ Risk Score

Product Risk

Risk scores are derived from data obtained through EiQ (Risk Assessment Platform), which cross-references information provided by suppliers with industry standards. Product ratings also come from EiQ, indicating that they are not tailored to individual suppliers but reflect the inherent risks associated with specific product categories.

Country Governance Risk

The World Governance Indicators (WGI) published by the World Bank serve as the main data source for assessing governance risk at the country level. This score reflects elements such as political stability, regulatory effectiveness, and the rule of law.

Forced Labor Risk

Evaluated by combining a subset of labor-related responses with geographic risk data from EiQ. This highlights countries and industries where the risks of forced labor are naturally higher.

Labor Risk

Includes survey responses on labor conditions and inherent geographic risk factors from EiQ.

Supports the evaluation of working conditions, employee rights, and labor law enforcement throughout supply chains.

Interpreting SAQ Scores and Taking Action

Understanding your Risk SAQ Score is vital for identifying systemic vulnerabilities and developing strategic mitigation plans. Here’s how you can effectively interpret and act on the SAQ results:

1. Analyze Risk Scores Across Control Domains

Evaluate risk ratings within governance, labor, and product risk categories. Compare scores against industry benchmarks to pinpoint areas needing urgent attention.

2. Identify Patterns and Systemic Risk Indicators

Identify recurring high-risk factors in specific product lines or geographic areas. Specify where corrective actions are needed to decrease overall risk exposure.

3. Develop Targeted Improvement Strategies

Implement corrective action plans (CAPs) to tackle high-risk areas. Enhance supplier due diligence and enforce ethical sourcing practices.

4. Conduct Periodic Reassessments

Regularly reassess SAQ scores to monitor progress in risk mitigation. Update compliance frameworks to ensure alignment with changing industry standards and regulations.

Final Thoughts

The Risk SAQ Score provides organizations with valuable insights into their risk landscape, helping them take proactive steps to improve compliance and ethical business practices. By leveraging the SAQ scoring methodology, businesses can enhance supply chain transparency, mitigate labor risks, and align with global governance standards.

For a detailed breakdown of how the Risk SAQ Score is calculated, refer to the official guide:  How is the Risk SAQ Scored?