Work out contract risk score instantly with clear inputs, formula shown and shareable results.
A contract risk score aggregates value and duration, supplier capability, commercial terms and delivery complexity into a single figure that determines the governance tier. Reporting the highest single dimension prevents an average from masking one severe exposure.
Risk score
Score = Value risk + Supplier risk + Commercial terms risk + Complexity risk, each 0-25
Governance tier
75+ Tier 1; 55-74 Tier 2; 35-54 Tier 3; below 35 Tier 4
Because the mitigation differs. Supplier financial risk calls for a bond or parent guarantee; complexity risk calls for stage gates and technical review.
Yes. Tying approval authority to the risk score rather than to contract value alone is a materially better control.