Verifying risk ratings and scoring calculations
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Summary of Verifying risk ratings and scoring calculations
This guide enables ServiceNow customers to verify risk ratings and scoring calculations within Third-party Risk Management. It emphasizes the importance of ensuring accurate and consistent risk scoring by checking the application of weights, normalized values, and scoring methods.
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Key Features
- Verification Checklist: Requires the [snvdrriskasmt.vendorassessor] or [snvdrriskasmt.vendormanager] role for actions via Vendor Management Workspace or VRM Classic.
- Configurations to Review:
- Scoring Method: Confirm the correct scoring method aligns with assessment goals.
- Weights: Ensure weights applied are accurate and whole integers to avoid incorrect scores.
- Scoring Calculations: Verify that calculations, normalized values, and treatment of unanswered questions are correct.
- Viewing Risk Ratings: Risk ratings can be viewed for third parties, engagements, assessments, and questionnaires, following completion of assessments.
Key Outcomes
By following this guide, customers can ensure the integrity of their risk assessments, resulting in accurate risk ratings that inform decision-making. Accessing and reviewing risk ratings allows for enhanced visibility into the risks associated with third parties and engagements.
You can review scores and risk ratings in your questionnaires to help ensure the accuracy and consistency of risk scoring by verifying the correct application of weights, normalized values, scoring methods, and risk rating scales. Based on the different weights you assign, Third-party Risk Management averages these values and produces a composite score for the overall risk.
Verification checklist
The [sn_vdr_risk_asmt.vendor_assessor] or [sn_vdr_risk_asmt.vendor_manager] role is required to perform all related actions by using the Vendor Management Workspace or VRM Classic user interface. For full descriptions of assessment configuration and set up, see Assessment configuration.Here are some of the configurations that you can check while reviewing scores and risk ratings:
| Configurations | Description |
|---|---|
| Scoring method | Verify that the correct scoring method has been selected. You can select or update scoring methods for risk area domains, risk area criteria, and component criteria. For example, confirm that Min Risk is used instead of Average Risk if that aligns better with your assessment goals. For more information, see Define a third-party risk domain, Define third-party risk area criteria, and Define component criteria. |
| Weights | Verify the accuracy of weights applied to risk areas, risk criteria, risk components, and questions. You can apply custom weights to reflect the importance and priority of different types of risk. Weight values for questions must be whole integers. Using decimals results in incorrect scores. For example, use 56 and not 0.56. For more information on how to assign or update weights, see Define a third-party risk domain, Define third-party risk area criteria, Define component criteria, and Define a question. |
| Scoring calculations | Verify that calculations, normalized values, and unanswered questions are behaving as expected. For example, confirm that you’re accounting for unanswered questions not being included as part of the scoring calculation.
For information on the different formulas used to calculate scores and ratings, see Third-party risk ratings and scoring calculations. For information on how to use normalized values to calculate assessment scores for Choice or Multiple Selection questions with the scored check box not selected Normalize the scores for metrics. |
How to view risk ratings
You can view risk ratings for individual third parties, engagements, assessments, and questionnaires.- Computed risk rating: The overall risk rating for the third party, calculated after the assessment.
- Third party rating: An aggregate of all engagement ratings.
- Engagement risk rating: Determined by the component criteria
- Subsidiary risk rating: If company1 has company2 and company3 as subsidiaries, the aggregate of final ratings on company2 and company3 are the subsidiary ratings on company1.
- Risk intelligence rating: Aggregate of all provider ratings.
- Assessment rating: Determined by weights defined by category, calculations, and more.