How to calculate vendor score ?

[Jaydeee]

Dear Experts,

How can we calculate the vendor risk score when weight , rating and normalized value is given.

Appereciate any inputs!

[Dr Atul G- LNG]

Hi @Jaydeee 

https://www.servicenow.com/docs/bundle/utah-governance-risk-compliance/page/product/grc-vendor-risk/...

https://www.servicenow.com/docs/bundle/yokohama-governance-risk-compliance/page/product/grc-vendor-r...

[SyedMahemoH]

Hi @Jaydeee ,

Hello

I hope you are doing good!
To calculate a vendor risk score in ServiceNow, you typically use a combination of weights, ratings, and normalized values. The normalized value is derived by multiplying the category rating by its corresponding weight, allowing for a standardized comparison across different risk categories. This approach helps in aggregating risk scores effectively.

Risk Factor Weight (%) Rating Normalized Value

Compliance Risk	30	High	1.0
Financial Risk	20	Medium	0.5
Cybersecurity Risk	50	Low	0.2

• Multiply each weight by its normalized value:
  • Compliance Risk: 30 × 1.0 = 30
  • Financial Risk: 20 × 0.5 = 10
  • Cybersecurity Risk: 50 × 0.2 = 10If my response helped you, please accept the solution and mark it as helpful.
    Thank You!

[Jaydeee]

for normalized value I used the formula like rating/no of metric categories.The result is coming correct and single vendor calculation also it is showing correct vendor risk score.Issue is when multiple vendor is getting involved.Could you please suggest

[SyedMahemoH]

Yes you can use below script to calculate risk scores for multiple vendors.

var vendors = [
{ name: 'Vendor A', ratings: [4, 3, 2], numCategories: 3 },
{ name: 'Vendor B', ratings: [5, 4, 3], numCategories: 3 },
{ name: 'Vendor C', ratings: [2, 2, 1], numCategories: 3 }
];

for (var i = 0; i < vendors.length; i++) {
var vendor = vendors[i];
var totalNormalizedValue = 0;

// Calculate normalized values for each rating
for (var j = 0; j < vendor.ratings.length; j++) {
var rating = vendor.ratings[j];
var normalizedValue = rating / vendor.numCategories;
totalNormalizedValue += normalizedValue;
}gs.info('Total Vendor Risk Score for ' + vendor.name + ': ' + totalNormalizedValue);
}
If my response helped you, please accept the solution and mark it as helpful.
Thank You!