Reshoring & Tariff Strategy worked example

Risk Adjusted Supply Chain Cost with risk adjusted supply chain cost severity score of 15 score: a worked example

Push risk adjusted supply chain cost severity score up to 15 score and the picture changes. This example computes every intermediate figure at that operating point. Use it when risk adjusted supply chain cost 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

  • Risk adjusted supply chain cost severity score: 15 score (raised for this scenario; the documented default is 6)
  • Risk adjusted supply chain cost occurrence score: 4 score (unchanged)
  • Risk adjusted supply chain cost detection score: 3 score (unchanged)

Working through the calculation

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

How this compares with the baseline

  • Against the tool's baseline example, where risk adjusted supply chain cost 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.
  • It multiplies a severity score, an occurrence score, and a detection score to produce a single risk priority number for a supply chain risk. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Risk adjusted supply chain cost risk score: 8.15 score (headline result)
  • Risk adjusted supply chain cost severity score: 15 score
  • Risk adjusted supply chain cost occurrence score: 4 score
  • Risk adjusted supply chain cost detection score: 3 score

Run it with your numbers

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

Last reviewed 2026-05-12.