Understanding the Risk Evaluation Score

The risk evaluation score is generated in TradeTapp as part of the financial calculations. After financial input is completed, you will see the score under the company's name in their profile and in the Risk Evaluation column in the Invitations dashboard.



What is the risk evaluation score based on? 

The risk evaluation score is based on the vendor's current Reported Total Backlog compared to the recommended Aggregate Total Capacity and the financial benchmarking percentile.

These values are found in the Summary tab of a vendor's profile in the Benchmarking Results and Key Metrics sections.

• The Reported Total Backlog is a value provided by the vendor in their questionnaire.
• To learn about how the benchmarking percentile is calculated, see Where do the benchmarking results come from?
• To learn about how the Aggregate Total Capacity is calculated, see How are Single Project Capacity and Aggregate Total Capacity calculated in TradeTapp? (General contractors)
   
  

How is the risk evaluation score calculated?

If the Reported Total Backlog does not exceed the Aggregate Total Capacity:

• High Risk: 29% or lower benchmarking percentile
• Moderate Risk: 30%-50% benchmarking percentile
• Low Risk: 51% or higher benchmarking percentile

If the Reported Total Backlog is greater than the Aggregate Total Capacity:

• Severe Risk: 29% or lower benchmarking percentile
• High Risk: 30%-49% benchmarking percentile
• Moderate Risk: 50%-69% or higher benchmarking percentile
• Low Risk: 70% or higher benchmarking percentile

If the Reported Total Backlog is 2x (or more) greater than the Aggregate Total Capacity:

• Severe Risk: 49% or lower benchmarking percentile
• High Risk: 50% or higher benchmarking percentile

Example Calculation

For example, for the vendor results above: 

• Reported Total Backlog is $33,864,551
• Aggregate Total Capacity is $289,363,945

So the Reported Total Backlog does not exceed the Aggregate Total Capacity and the benchmarking percentile is 53% so using the guidance above, the vendor receives a Low Risk score.

Want to learn more about risk assessment in TradeTapp? Download the TradeTapp Risk Assessment Overview.