Patent ID: 8185430

Claim:
A method of stratifying a supplier of goods or services, comprising: identifying a supplier of goods or services to a business; receiving, by a processor, selected answer options corresponding to a series of questions for measuring risk posed to the business by the supplier of goods or services to the business; achieving, by the processor, at least one risk element score for one or more questions of the series of questions by measuring at least one risk element for the one or more questions in the series of questions; calculating, by the processor, an inherent risk index (IRI) for the at least one risk element based on the at least one risk element score measured for the one or more questions of the series of questions; calculating, by the processor, a remediated risk index (RRI) when the IRI fails to meet a risk level wherein the RRI is a measure based in part on processes or safeguards put in place by the suppler to reduce risk; setting the RRI equal to the IRI when the IRI meets the risk level; and determining for the supplier at least one of a tier level or a composite supplier risk index (CSRI) based on the RRI for the at least one risk element.