Rare Earth Magnet & Motor Materials worked example

Supplier Risk with severity of a rare earth supply disruption of 3 score: a worked example in rare earth magnet & motor materials

This worked example runs the supplier risk numbers for a tougher week than the baseline: severity of a rare earth supply disruption of 3 score instead of the typical 6 score. Estimate supplier risk for rare earth magnet and motor materials using production-ready inputs so teams can rank risks and decide which issue needs containment, controls, or escalation first.

The inputs for this scenario

  • Severity of a rare earth supply disruption: 3 score (the input this scenario stresses; the baseline uses 6)
  • Likelihood the supplier disruption occurs: 4 score (held at the documented default)
  • Ability to detect the disruption early: 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 severity of a rare earth supply disruption 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.
  • Use it during supplier qualification, annual risk reviews, or when a geopolitical or pricing shock forces you to re-rank magnet feedstock exposure. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.

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 severity of a rare earth supply disruption to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.