Reshoring & Tariff Strategy worked example

Country of Origin Cost Risk with country of origin cost risk severity score of 15 score: a worked example

What does the result look like when country of origin cost risk severity score reaches 15 score? The full calculation is worked below with real intermediate numbers. Use it when country of origin cost risk in reshoring and tariff strategy needs a defensible ranking against other reshoring and tariff strategy risks for the next review.

The inputs for this scenario

  • Country of origin cost risk severity score: 15 score (raised for this scenario; the documented default is 6)
  • Country of origin cost risk occurrence score: 4 score (unchanged)
  • Country of origin cost risk detection score: 3 score (unchanged)

Working through the calculation

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

How this compares with the baseline

  • Against the tool's baseline example, where country of origin cost risk severity score 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 country of origin cost risk severity score is genuinely sustained, not just peaked for a shift. RPN treats all three factors as equally weighted multipliers, so a high-severity, near-undetectable risk can score the same as a frequent minor one — always review the raw severity score alongside the product.

Results at a glance

  • Country of origin cost risk score: 8.15 score (headline result)
  • Country of origin cost risk severity score: 15 score
  • Country of origin cost risk occurrence score: 4 score
  • Country of origin cost risk detection score: 3 score

Run it with your numbers

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

Last reviewed 2026-05-12.