Payment Terminal & Retail Hardware worked example

Supplier Risk with defect severity if supplier issue reaches the line of 15 score: a worked example in payment terminal & retail hardware

What does the result look like when defect severity if supplier issue reaches the line reaches 15 score? The full calculation is worked below with real intermediate numbers. Use it when supplier risk in payment terminal and retail hardware needs a defensible ranking against other payment terminal and retail hardware risks for the next review.

The inputs for this scenario

  • Defect severity if supplier issue reaches the line: 15 score (raised for this scenario; the documented default is 6)
  • Likelihood of the supplier issue occurring: 4 score (unchanged)
  • Chance the supplier issue escapes incoming detection: 3 score (unchanged)

Working through the calculation

  • Applying the documented formula (Supplier risk score = supplier risk severity score × supplier risk occurrence score × supplier risk detection score) to the inputs above produces each figure below.
  • At this operating point the engine returns 8.15 score for supplier risk score, the number this scenario is built around.
  • At this operating point the engine returns 15 score for supplier risk severity score.
  • At this operating point the engine returns 4 score for supplier risk occurrence score.
  • At this operating point the engine returns 3 score for supplier risk detection score.

How this compares with the baseline

  • Against the tool's baseline example, where defect severity if supplier issue reaches the line sits at 6 score and the headline result is 4.55 score, this scenario comes in 79.12% above the baseline at 8.15 score.
  • A figure at this level is achievable when defect severity if supplier issue reaches the line is genuinely sustained, not just peaked for a shift. RPN is a relative ranking, not an absolute probability; two very different score combinations can produce the same number, so always review the severity dimension on its own for safety-critical parts.

Results at a glance

  • Supplier risk score: 8.15 score (headline result)
  • Supplier risk severity score: 15 score
  • Supplier risk occurrence score: 4 score
  • Supplier risk detection score: 3 score

Run it with your numbers

  • Every input above is editable in the live Supplier Risk calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.