📌 Overview
The Business Impact parameter defines how critical a supplier is to your organization and represents the supplier’s Inherent Risk.
When determining Business Impact, consider factors such as:
The supplier’s criticality to your business operations
The sensitivity of data shared with the supplier
The supplier’s access to physical facilities or data systems
📊 Business Impact Scale
In Panorays, Business Impact is measured on a 5-point scale:
Minimal
Minor
Moderate
Significant
Severe
💡 Note
Business Impact is a subjective parameter, and different organizations may assign different impact levels to the same supplier.
💡 Best Practice Recommendation
If your organization does not have a standardized Business Impact classification process, it is recommended to assign Moderate Business Impact to all suppliers by default.
📈 Impact on Risk Rating
Business Impact directly affects the overall Risk Rating. For example, a security issue identified in a supplier with a Severe Business Impact will result in a higher risk rating than the same issue found in a supplier with a Minor Business Impact.
⚙️ Initial Set-Up
By default, Panorays uses a predefined formula within the Business Information fields to auto-recommend a Business Impact based on your responses.
✏️ Customizing the Business Impact Calculation
You can customize how Business Impact is recommended to ensure consistent classification across your suppliers.
This allows you to:
Upload or define a custom formula for auto-recommending Business Impact
Assign Business Impact recommendations per answer in the Business Information questions
💡 Example
If a supplier receives access to your internal systems, you can automatically classify them as Severe Business Impact.
Customizations can be made by editing the Business Information Management fields in Company Settings.
📌 Summary
Business Impact helps standardize supplier risk classification and plays a key role in determining overall Risk Ratings. Custom formulas allow you to align impact scoring with your organization’s risk methodology.