What is the definition of Risk in the Observatory? (UK only)

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Risk in the Observatory refers to suppliers who are potentially “at risk” due to the proportion of their revenues generated by business with public sector bodies.
Suppliers are identified as ‘At Risk’ when the proportion of spend and transactions fall into one of the three Risk categories.

  • Risk Category A: Either 50% or more of the supplier’s revenue is dependant upon spend by the public sector body or the amount spent by the public body per employee of the supplier is greater than or equal to £50,000.
  • Risk Category B: Either 30-49% of the supplier’s revenue is dependant upon spend by the public sector body, or the amount spent by the public sector body per employee of the supplier is greater than or equal to £20,000.
  • Risk Category C: Either 20-20% of the supplier’s revenue is dependant upon spend by the public sector body, or the amount spent by the public sector body per employee of the supplier is greater than £10,000.

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