🗓️ Release date: August, 2026
💻 Solutions: Sustainable Sourcing, Sustainable Investments, ESG Reporting
In August 2026, we will introduce an enhancement to how inherent risk is presented in Worldfavor.
The update provides a more nuanced view of supplier risk by combining both country and industry risk into a single inherent risk score, while still allowing users to review each underlying risk dimension separately.
How inherent risk works today
Today, country risk and industry risk are assessed independently. When displaying a supplier's overall inherent risk level, Worldfavor uses the higher of the two risk ratings.
This approach ensures that significant exposure in either dimension is clearly highlighted and remains fully visible in the platform.
What's changing
From August, Worldfavor will combine country risk and industry risk into a single inherent risk score. This provides additional context by considering both dimensions together when determining the overall inherent risk level.
For example:
A supplier with high country risk and high industry risk will continue to be classified as high inherent risk.
A supplier with high risk in one dimension and lower risk in the other may receive a more balanced overall inherent risk assessment.
Country and industry risk will continue to be available separately, providing full transparency into the factors contributing to a supplier's risk profile.
In addition, industry risk will be expanded from a binary High / No data model to a three-level scale: Low, Medium, and High.
What this means for your risk assessment
As a result of this enhancement, there may be changes to the inherent risk level shown for some of your suppliers when using both country and industry risk indices. These changes reflect the introduction of a more contextualised risk model that considers both country and industry exposure together.
No action is required. The update will be applied automatically to all suppliers when it goes live in August.
As always, inherent risk remains one component of the overall supplier risk assessment and continues to be evaluated alongside supplier performance when determining residual risk.
If you would like to discuss the update in more detail, please reach out to your Customer Success Manager.