Rare Earth Magnet & Motor Materials worked example

Supplier Risk with severity of a rare earth supply disruption of 15 score: a worked example in rare earth magnet & motor materials

What does the result look like when severity of a rare earth supply disruption reaches 15 score? The full calculation is worked below with real intermediate numbers. Use it when supplier risk in rare earth magnet and motor materials needs a defensible ranking against other rare earth magnet and motor materials risks for the next review.

The inputs for this scenario

  • Severity of a rare earth supply disruption: 15 score (raised for this scenario; the documented default is 6)
  • Likelihood the supplier disruption occurs: 4 score (unchanged)
  • Ability to detect the disruption early: 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 severity of a rare earth supply disruption 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 severity of a rare earth supply disruption is genuinely sustained, not just peaked for a shift. The score is only as consistent as your scoring scale — comparing a supplier rated on a 1-10 severity scale against one rated 1-5 is meaningless.

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.