Configuring Moody's Forced Labor Risk Assessment
Moody's Forced Labor Risk Assessment is a data provider you can use to run the Forced labor risk assessment check.
How it works
The Forced labor risk assessment check helps to uncover an organization’s risk exposure to all forms of forced labor and extreme labor exploitation, that can be used in a company risk assessment.
Information used to run this check
To run the check, complete all the required fields in the company profile. The Company number field must be filled out to generate the BvD ID.
Overall results of the check
Moody's Forced Labor Risk Assessment generates a Forced labor risk score comprising three metric scores for Business, Industry, and Country risk. Each sub-score consists of categories that can be examined to see their weight relative to the overall score. The items listed first are the most weighted for the overall score. The Forced labor risk score and risk zones have scores from 0 to 100, with a higher score representing more risk. All scores are based on user input data. Missing data is penalized by assigning the corresponding metric the highest risk score.
The three metric scores are individually compared against the Maximum business score to pass, the Maximum industry score to pass, and the Maximum country score to pass, which are set in the smart policy. The comparison will return a Pass, Partial, Fail , or Error result. For a check to pass, the metric scores need to be lower or equal to the value set in your smart policy. Note that Moody's can't advise on the configuration of your maximum risk scores, which should be configured according to your own internal risk policy.
The scale categories of the risk score are the following:
Risk zones | Color | Risk sub-zones |
|---|---|---|
Lower risk | Green |
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Emerging risk | Amber |
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Higher risk | Red |
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The overall score consists of three metric scores:
Metric scores | Risk categories and their metrics |
|---|---|
Business A range of financial characteristics of the organization, and an assessment of employee and supplier behaviors. The overall business score is a weighted sum of 10 individual metric scores. |
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Industry Relate to an organization through its main industry/sector and the main industries associated with its primary suppliers and subsidiaries. |
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Country Relate to an organization through the locations of the organization’s HQ and the locations of its primary suppliers and subsidiaries. |
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Testing your configuration
Once the Forced labor risk assessment check is configured, follow these steps in your demo environment to test whether it's working as expected.
To test your configuration:
After creating the profile, run the Forced labor risk assessment check. If the check returns a risk score, it’s working as expected.