Risk Criteria

Risk Criteria are principles which establish an organization’s approach and parameters for assessing, accepting, pursuing, retaining, or treating risk. Risk criteria establishes the basis for a supply chain’s risk scope and serves as the benchmark of scales for the evaluation and measurement of risk consequences and likelihood. Examples of risk criteria include impacts to key business metrics such as: revenue, costs, customer satisfaction; or post-specific risks to supply chain continuity and operations such as supplier financial, location, recovery, or capacity vulnerabilities. Considerations for risk criteria can include the: reliability and degree of uncertainty of information; assumptions that may influence results; risk triggers or its root causes; supply chain relationships; risk weaknesses; and the interactions between threat, criticality, and vulnerability