How the Indirect SAQ is Scored in RBA Online
Table of Contents
In the Responsible Business Alliance (RBA) Online platform, the Indirect Spend SAQ (Self-Assessment Questionnaire) is used to assess risks associated with indirect suppliers. The scoring methodology for the Indirect SAQ is different from the Facility (Risk) SAQ, and it's important to understand how this score is calculated to ensure proper risk management for indirect suppliers.
The Scoring Formula
The Indirect Spend SAQ score is calculated using a weighted formula that takes into account several key categories. Each category is given a different weight based on its importance to the overall risk profile. The formula for the Indirect SAQ score is as follows:
(Country * 0.2) + (Service * 0.1) + (Labor * 0.175) + (Environmental * 0.175) + (Health & Safety * 0.175) + (Ethics * 0.175)
Country: Weighted at 20% of the overall score, this assesses the country-specific risks related to political stability, legal framework, and social factors in which the supplier operates.
Service: Weighted at 10%, this evaluates the type of service the supplier provides, including whether the service is high-risk or low-risk based on industry standards.
Labor: Weighted at 17.5%, this category looks at labor-related risks, including working conditions, labor laws, and employee rights at the supplier.
Environmental: Weighted at 17.5%, this measures the environmental risks associated with the supplier, such as waste management, energy use, and overall sustainability.
Health & Safety: Weighted at 17.5%, this category assesses the supplier’s adherence to health and safety standards for their workforce.
Ethics: Also weighted at 17.5%, this examines the supplier's ethical practices, such as anti-corruption policies and commitment to fair business practices.
Example Calculation
To better understand how the formula works, let’s look at an example:
| (Country score: 40.7 * 0.2) + (Service score: 42.4 * 0.1) + (Labor score: 60.5 * 0.175) + (Environmental score: 78.1 * 0.175) + (Health & Safety score: 67.9 * 0.175) + (Ethics score: 64.8 * 0.175) |
Breaking it down step by step:
| (40.7 * 0.2) = 8.14 (42.4 * 0.1) = 4.24 (60.5 * 0.175) = 10.59 (78.1 * 0.175) = 13.67 (67.9 * 0.175) = 11.88 (64.8 * 0.175) = 11.34 |
When you add all these values together:
| 8.14 + 4.24 + 10.59 + 13.67 + 11.88 + 11.34 = 59.86 |
The score is then rounded to one decimal point, giving an overall Indirect Spend SAQ score of 59.9.
What the Score Means
The final score helps determine the level of risk associated with an indirect supplier. A lower score may indicate a higher risk, while a higher score suggests that the supplier adheres to better standards in the areas of labor, ethics, health & safety, environmental, and other key factors. The RBA uses this score to help organizations make informed decisions regarding their supplier relationships and implement appropriate risk mitigation strategies.
Understanding the scoring methodology of the Indirect SAQ in RBA Online is crucial for assessing the risks posed by your indirect suppliers. By carefully evaluating each category and applying the correct weights, the RBA platform provides a comprehensive view of a supplier’s risk profile, allowing for informed decision-making and better supply chain management.
If you have any further questions or need assistance with the scoring process, feel free to reach out to the RBA help desk at Help@responsiblebusiness.org.