6. Risk assessment

Risk assessment

Multiple risk assessment calculations are undertaken and displayed on the dashboard, showing risk at: Sub-indicator level; Indicator level; Category level; and Supplier level

As described in List of Indicators page, for each report received, an overall score is calculated as:

Weight = Risk of reported case (no weight=0; low=1; medium=2; high=3) X Severity from List of Indicators (1 to 5)

This means that each report will result in a score being calculated between 0 to 15 (0 indicating no risk, 15 indicating extreme risk), signifying the severity of the reported incidence.

Once a complete list of weights for each report is calculated, they are combined using the methodology that is selected in this step.

Three different methodologies are currently supported:

• Highest risk: When multiple reports are received for one sub-indicator, the overall risk for the sub-indicator should be the highest risk that it has received in the reports. For example, if a sub-indicator receives a low risk weighting in one report and a high risk weighting in another report, then the sub-indicator should have a risk level of high. The methodology is applied similarly at the indicator, category, and supplier levels.
• Average risk: When multiple reports are received for one sub-indicator, the overall risk for the sub-indicator should be the average of the risk scores for the sub-indicator given in each of the reports. For example, if a sub-indicator in one report was given a risk weighting of low, and the same sub-indicator in another report was given a risk weighting of high; then the sub-indicator should have a risk level of medium. This methodology is applied similarly at the indicator, category, and supplier levels.
• Weighted average: A weighted average is calculated by assigning different weights to the different types of assessment reports based on their importance / credibility. For example, if Hotline Operator inputs are considered more credible than self-reported responses to SAQ questions, then higher weights can be given to reports from Hotline Operators.

If weighted average is selected, the Super Administrator must enter weights for all types of assessment reports that can be submitted to Global Trace. This includes:

• Geography: Composite risk index, comprised of input from Global Slavery Index and US Department of State’s Trafficking in Person’s Report that is built in to the Global Trace platform.
• Product risk listing: Geography / commodity risk index based on US DOL Bureau of International Labor Affairs List of Goods produced with child labor or forced labor.
• Improvement Plan: Weighting for the updated risk after an improvement plan has been completed.
• DNA test results: If Global Trace has been configured for users to submit DNA test results, a separate weighting can be applied for cases where a DNA test fails.
• Assessor weighting: Each Assessor role assigned the ability to submit reports will appear separately in the list. This allows the Super Administrator to assign more weight to reports created by some assessors over others. For example, a report created by an Auditor after a full audit could be assigned more weighting than a report to a Hotline Operator.