The Risk Index empowers you to define and use risk metrics when analyzing parts inside BOMs in BOM Insight. Creating your own risk metric helps you to evaluate the supply chain risk of components based on a mix of internal and market intelligence data available inside the BOM based on your prioritization. There is a default Risk Index that is used across BOMs until a customized index is created by you as an admin.
All "Member" type users can choose which index to use for the BOM from the list of available indices in the BOM's Preferences section.
For more information about viewing Risk Index inside of your BOMs, please review the following help article.
Risk Index Configuration
To access your Risk Index configuration page, hover over your profile icon and click on System Settings. Then in the left navigation bar click on Risk Index.
The Risk Index page will display all the current indices that have been created with your account. It will include in the list their: Risk Index Name, summary of its Parameters, and the Default option. Then the icons to the right will allow you to Duplicate, Edit, or Delete a risk index.
The default "System Risk Index" can be duplicated, but it can't be edited or removed.
Create New Index
When needing a new custom risk index, click on Create New Index to get started.
You will need to enter in your new "Risk Index Name" and then click on Create Risk Index.
Within your newly created Risk Index, you will now be able to customize its parameters. There's a test visualization to see how this risk index would look by selecting a part in a BOM that you've previously created.
Add New Parameter
To get started, first click on Add New Parameter in order to select the specific column(s) parameters for this new risk index. Then it will allow you to add and adjust the risk of each parameter by the conditions that you set for them individually.
You can choose to select parameters based on either System or Custom columns. A maximum of 8 parameters are supported. After selecting the specific columns, then click on Add Parameters.
Then for each specific parameter, you can click on Add Condition. This will open up the conditions module, where you can set conditions and assign a risk score for each.
Conditions also include an "Overwrite" option. When this is checked, if the condition is true, then the other values set for this parameter will be ignored. When overwritten, the overall Risk Index score will become the score you have set here.
Supplyfame automatically includes a condition for cases where there is no information available titled 'No Data'. This condition can be edited to not be included in your Risk Index calculations by clicking the pencil icon and then clicking 'Do Not Use in Calculation'
Lead Time
For the Lead Time conditions, you can specify if it should be evaluated based on the Estimated Lead Time. Check the box if you want the condition to "include even when estimated". The estimated lead time will be calculated from all other sources, whenever a lead time does not exist. More information is available about Estimated Lead Times in this article.
Risk Scale
When creating your index, below is the scale used for the different levels of risk:
- Low (green): 0 - 30
- Medium (orange): 31 - 60
- High (red): 61 - 100
As you set your conditions for the new risk index, then it will calculate the average risk across all of its parameters. The risk will be rounded to the nearest whole number. If multiple conditions are satisfied for one parameter, then the first one in order will be taken into account. When more than one parameter with an overwrite condition is satisfied, it will take that into account and use the first overwrite one in order.
When conditions are not met or data is not identified ("No data"), then those conditions are ignored when calculating the overall Risk Index score. Ignored data as example could be from an unidentifiable custom column. If there are conditions set and it is not available for a part, then it will be handled based on the "No Data" option setting.
Risk Index will calculate regardless of the part being in part master and belonging to a part category or not. If a part belongs to a part category, the risk index will also calculate regardless if the setting “Use Supplyframe Intelligence” is enabled for a category.
When a condition is evaluated but the outcome is not part of the risk algorithm, such that it doesn’t carry a score, or there is no data available to evaluate the condition, then it will display as “No Score”.
Test the Risk Index
When creating a Risk Index, you can use the Test the Risk Index on the right side to preview how your selected parameters would display risk for a specific part in your BOM.
Select first the BOM that you want to use, choose a specific part within that list, and then click on Calculate. It will then display the estimated risk based on your current chosen configuration.
When you click on the previewed Risk Rank result, the side modal will open to display the breakdown behind the analysis.
Default Risk Index
You can set which index should be used as the Default Risk Index, which will then automatically be utilized when creating BOMs. Click on the radio button for a specific index to make it the default used in BOMs.
Unless a custom created index is selected, it will use by default the "System Risk Index". Clicking on the default index's name will show the details of its configuration.
Available Parameters
- Lead Time
-
Lifecycle (Dropdown options based on IHS lifecycles)
- Active
- Contact Manufacturer
- End of Life
- Lifetime Buy
- Not Recommended
- Obsolete
- Preview
- Sampling
- Transferred
- Unknown
- Stock
- Price
- Custom column (If the column is not found when running the risk, then it will be ignored.)
- Supplier is on Preferred List (Only for items priced from Web Price.)
- YTEOL
- Country of Origin
- Number of FFFs (These are Xref alternates that are the same Form, Fit, & Function equivalent.)
- Number of suppliers
- Price History Trend - last 1 month (displayed on Part Intelligence). You can set the % difference.
- Stock History Trend - last 1 month (displayed on Part Intelligence). You can set the % difference.
- Datasheet (Displayed based on if they are available - true or false.)
- Popularity (Class & Category) - This uses a number rank, and not the %. For example, if: rank < 500, then assign a risk score of 80. This means that it will possibly be high competition to get this part.
- Manufacturer
- Supplier
- Category
- MoM Commodity Demand Index %
- MoM Commodity Lead Time Index %
- MoM Commodity Inventory Index %
- MoM Commodity Price Index %
- User defined (custom) columns
Duplicate a Risk Index
When wanting to create a new risk index that is similar to an existing one, you can click on the duplicate icon to easily copy it.
This allows you to retain existing parameters as desired and modify any options as needed.
Within the Duplicate Risk Index window, you can modify what the "New Risk Index Name" should be. Otherwise, it'll duplicate the existing risk index's name and add "Copy" to the end of it. Then click on Duplicate to save.
Your new duplicated index will now show in your list. To make changes to the new duplicate index's parameters, click on the pencil edit icon to make any needed modifications.
Edit a Risk Index
When needing to make changes to a custom Risk Index, click on the pencil icon to the far right of its name.
This will open the parameters page of the specific index so that can you make modifications. When making changes to the Risk Index Name, type in your changes within the field, and then click on Save Risk Index to confirm the name modifications.
Click on the pencil icon to the far right of a Condition within your index to make changes. After you've modified the parameter's conditions as needed, then click on Save to complete.
When a Risk Index is adjusted in the System Settings, it does not affect the Risk Index already calculated and being displayed in an existing BOM. In order to see any changes made to a Risk Index's settings, you will need to refresh the BOM or specific line items that you want to see updated.
Delete Conditions
To remove a specific Condition all together, click on the delete trashcan icon.
The popup window will confirm "Are you sure you want to remove the selected item(s)?" Click on Remove to confirm and delete the condition.
Delete a Risk Index
When needing to delete a Risk Index, click on the delete trash icon to the far right of its name. The popup window will ask to confirm "Are you sure you want to remove the selected item(s)?" Click on Remove to confirm and delete the Risk Index.
The way to delete a Risk Index is to select the specific indices and then click on Remove. This will open the same window asking you to verify before completing its removal.