Payment Terminal & Retail Hardware worked example

Supplier Risk with defect severity if supplier issue reaches the line of 3 score: a worked example in payment terminal & retail hardware

Suppose defect severity if supplier issue reaches the line falls to 3 score. This page works the full calculation at that level so you can see exactly which result moves and by how much. Estimate supplier risk for payment terminal and retail hardware using production-ready inputs so teams can rank risks and decide which issue needs containment, controls, or escalation first.

The inputs for this scenario

  • Defect severity if supplier issue reaches the line: 3 score (the input this scenario stresses; the baseline uses 6)
  • Likelihood of the supplier issue occurring: 4 score (held at the documented default)
  • Chance the supplier issue escapes incoming detection: 3 score (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Supplier risk score = supplier risk severity score × supplier risk occurrence score × supplier risk detection score.
  • Supplier risk score works out to 3.35 score at these inputs, and this is the headline figure for the scenario.
  • Supplier risk severity score works out to 3 score at these inputs.
  • Supplier risk occurrence score works out to 4 score at these inputs.
  • Supplier risk detection score works out to 3 score at these inputs.

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 26.37% below the baseline at 3.35 score.
  • It multiplies severity, occurrence, and detection scores into a single supplier Risk Priority Number for ranking and triage. When the numbers land here, the stressed input is the lever to work; the walkthrough above shows exactly how much each output recovers as it climbs back toward the baseline.

Results at a glance

  • Supplier risk score: 3.35 score (headline result)
  • Supplier risk severity score: 3 score
  • Supplier risk occurrence score: 4 score
  • Supplier risk detection score: 3 score

Run it with your numbers

  • To rerun this with your own numbers, open the live Supplier Risk calculator, set defect severity if supplier issue reaches the line to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.