Scoring calculations using the classic assessment engine
Summarize
Summary of Scoring calculations using the classic assessment engine
The Third-party Risk Management application in ServiceNow enables comprehensive external risk assessments by calculating multiple ratings and scores using the classic assessment engine. This engine dynamically computes risk scores by applying configurable user-defined parameters such as questions, weights, categories, and risk rating scales. These calculations provide a detailed understanding of third-party risk exposure, helping you tailor risk mitigation strategies effectively.
Show less
Key Features
- Risk Rating Scale Configuration: Customize risk rating categories, values, and display formats (e.g., colors or numeric scales) to suit different questionnaires.
- Dynamic Score Calculation Engine: Utilizes the ServiceNow AI Platform® assessment engine to calculate ratings through a series of equations that incorporate question responses, weights, and category importance.
- Question and Metric Setup: Define questions (metrics) with associated weights, categories, and metric scale definitions (High/Low) to influence scoring.
- Scored Questions Option: Optionally mark questions as scored (correct/incorrect), changing the calculation method to binary scoring rather than scaled values.
- Business Service Criticality Weighting: Incorporate criticality weights from associated business services to adjust risk scores based on service importance.
- Qualitative Document Scoring: Assess document requests qualitatively, with default risk ratings based on document presence and the option for assessor overrides.
- Final Assessment Rating: Aggregate weighted averages of questionnaire and document scores across different risk areas to produce an overall risk rating.
- Verification of Scoring Accuracy: Tools and methods exist to verify correct application of weights, normalized values, and rating scales to ensure consistent scoring.
How the Calculation Works
The process calculates individual question ratings by evaluating responses against metric scales or scored options. Each question’s contribution is weighted within its category, and normalized values enable fair comparisons across diverse questions. Category ratings sum these normalized question values and are further normalized by category weights. The questionnaire’s quantitative score sums the normalized category values. Document qualitative scores adjust risk based on document compliance. Finally, the overall assessment rating combines questionnaire and document scores weighted by risk area importance, providing a comprehensive risk score.
What This Enables You to Do
- Perform detailed third-party risk assessments with customizable scoring tailored to your organization's risk criteria.
- Incorporate business service criticality to reflect the true impact of risks on your services.
- Use scored and non-scored questions to capture both binary and scaled risk factors.
- Balance quantitative questionnaire data with qualitative document reviews for a holistic risk profile.
- Adjust scoring parameters and weights to align with evolving risk management strategies.
- Verify and audit scoring calculations to maintain accuracy and trust in assessment results.
Practical Considerations
- Only answered questions contribute to calculations, ensuring incomplete data does not skew results.
- Weights assigned to questions and categories directly influence their impact on the final score.
- The scoring engine supports multiple risk areas, each with distinct scoring methods and weights.
- Document risk ratings can be overridden by risk assessors to reflect qualitative judgments.
By understanding and configuring these parameters, ServiceNow customers can effectively leverage the classic assessment engine to produce meaningful, actionable risk scores that support informed decision-making and risk mitigation planning.
Perform a comprehensive external risk assessment when calculating multiple ratings and scores by using the Third-party Risk Management application. You can gain a deeper understanding of the overall calculation process and learn how user-defined parameters and configurations influence the results of the questionnaires.
The following video provides an overview of assessment scoring using the classic assessment engine.
Risk rating scale
Every time that you create a questionnaire, the system applies a default risk rating. You can configure the risk rating scale, which includes the categories, minimum, and maximum values, to meet your specific questionnaire needs that can vary for each assessment. For example, you can define risk rating values as colors rather than 1-Very High through 5-Very Low.
The following example shows the default risk ratings that are provided as part of the base system.
Score calculation mechanism
- Questions (metrics)
For more information on how to define a question, see Define a question.
- Metric scale definition
For more information on how to define the metric scale definition, see Define a question.
- Categories
For more information on how to define a category, see Set up and maintain a question bank.
- Weights
For more information on how to define a weight, see Define component criteria.
- Risk rating scale
For more information on how to define a risk rating scale, see Set up risk rating scales for scoring.
- Business service rating scale
At the end of the scoring calculation, if a third party or engagement is associated with a business service that you defined in the Service [cmdb_ci_service] table, that criticality weight is factored into the calculation. Different business services may have varying levels of associated risks. By adjusting the criticality weight, you can use the resulting values to adjust your risk mitigation strategies.Note:You can define the criticality weights by navigating to .Only answered questions contribute to overall calculations.As part of the base system, four ratings are defined:
- 1 - most critical
- 2 - somewhat critical
- 3 - less critical
- 4 - not critical
You can associate each third party or engagement with multiple business services.
The following infographic shows the assessment rating calculation process.
- Each question on the questionnaire has these values calculated:
-
questionRatings: The rating for each question is calculated by the responses. For non-scored questions, the rating is determined by the metric scale definition and the values associated with the answers. For scored questions,
questionRatingis set to0or1depending on whether the correct answer is selected. ThequestionRatingis not a value that is stored in a table. - questionPercentContribution: The percent contribution of each question within its category is determined by this calculation. This value is based on the weight that is assigned by the third-party risk manager to the question and the overall weight of the category. The questionPercentContribution is not a value that is stored in a table.
- questionNormalizedValue: The normalized value for each question is calculated by multiplying the question rating, question percent contribution, and a constant value (100). This value enables you to compare questions with different weights and ratings.
-
- The categories of each questionnaire have these ratings calculated:
- categoryRating: The rating for each category is calculated by summing up the normalized values of all the questions within the category. The category rating is derived from the associated risk rating scale.
- categoryNormalizedValue: The category rating is normalized by multiplying it with the category weight to enable you to compare values across all categories.
- Questionnaire, questionnaireQuantitativeScore: The overall quantitative score for the assessment is calculated by summing up the normalized category scores. This score represents the risk score for the questionnaire.
- Documents, Qualitative Score: The calculation for the qualitative risk rating for the document requests is based on the answer to the default question “Do you have document ‘document name’? on the document request. This rating can be overridden by the third-party risk assessor if necessary.
- Assessment, assessmentRating: The final rating for the assessment is calculated by taking the weighted average of the questionnaires and document requests within each third-party risk area. The weights are determined by the risk area scoring method.
Scored option for questions
Selecting the scored option (Scored check box) is optional. When the Scored check box is selected, the system treats the question as a correct/incorrect question. In this case, the system does not calculate questionRating using the metric scale definition (High/Low) formula. Instead, questionRating is set to 1 when the correct answer is selected and 0 when an incorrect answer is selected.
The system still calculates questionPercentContribution for scored questions based on the question weight within its category. The normalized value is then calculated using the standard normalization equation (questionNormalizedValue = 100 * questionRating * questionPercentContribution). As a result, a scored question contributes 0 when answered incorrectly, and
contributes its weighted share of the maximum score (100) based on
questionPercentContribution when answered correctly.
The Maximum normalization input field applies only when the Scored check box is not selected, because it is used with the High/Low rating calculation. When the Scored check box is selected, the maximum normalization input does not affect scoring. For more information on questions and normalized scores, see Set up and maintain a question bank, Define a question and Normalize the scores for metrics.
questionRating calculation
You use the questionRating calculation to define the relative degree of significance of each individual assessment metric as compared to other metrics. This key variable helps to calculate the normalized value
later in the process.
You can define the Scale definition for an individual assessment metric by setting it to be High or Low.
The following example shows how the metric scale definition field was defined in the Assessment Metric form.- High means that large numerical values indicate a positive result. If the metric scale definition is high, the following equation is used:
questionRating = (value - minValue) / (maxValue - minValue) - Low means that small numerical values indicate a positive result. If the metric scale definition is low, the following equation is used:
questionRating = 1 - ((value - minValue) / (maxValue - minValue))
The following example shows the question value field that is defined in the assessment instance question form.
The value used in the equation is taken from the response to the question. The configuration of the metric defines the correct answer, which is the value, and the other values that are associated with the other incorrect or less desirable answers. The questionRating is not a value that is stored in a table.
questionPercentContribution calculation
The questionPercentContribution defines the degree of significance of the assessment metric within the category where it’s included. This key variable is used in calculating the normalized value later in the
process.
The following equation is used to calculate the questionPercentContribution.
questionPercentContribution = (questionWeight / sumOfAllQuestionWeightsWithinCategory)
The Category represents a theme for evaluating the assessable records in a metric type. You can define this category's example with the return on investment (ROI), risk, performance, security, personal data, and so on.
The Weight is a numerical value that represents the metric importance that relates to other metrics. A higher weight in proportion to the overall weight of the category has a stronger influence on the final score. You can define the weight, set it to any integer, and apply it to questions and categories.
The following example shows the question category and weight field that you can define in the assessment metric form.
questionNormalizedValue calculation
The questionNormalizedValue enables questions with different weights and ratings to be compared equally on the same scale.
The following equation is used to calculate the questionNormalizedValue.
questionNormalizedValue = 100 * questionRating * questionPercentContribution
Each answer to every question (assessment metric) on the questionnaire has a normalized value. This normalized value enables you to make a meaningful comparison that is later rolled up to the category and the overall assessment results.
The following example shows a list of normalized values for an assessment group.
categoryRating calculation
Now that there are normalized values for each metric within the category, the categoryRating calculates a value for the entire category that can
then be normalized by using the categoryNormalizedValue equation to facilitate inter-category comparisons.
categoryRating.categoryRating = sumOfAllQuestionNormalizedValuesWithinCategory
The category Rating is the sum of all normalized values for the metrics within the category.
The stated Risk Rating for each category is derived from the associated Risk Rating Scale.
The following example shows the list of category ratings and risk ratings for an assessment category.
categoryNormalizedValue calculation
With the Category Ratings established, the categoryNormalizedValue equation uses this rating and the category weight to normalize the result across all categories.
The following equation is used to calculate the categoryNormalizedValue.
categoryNormalizedValue = categoryRating * (categoryWeight / sumOfAllCategoryWeights)
This calculated normalized value performs a more meaningful comparison that is later rolled up to the overall assessment results. Higher categoryWeight values increase the normalized value of the category.
The following example shows the list of normalized values for an assessment category.
questionnaireQuantitativeScore calculation
With all categories normalized, the overall quantitative score for the assessment is calculated.
The following equation is used to calculate the questionnaireQuantitativeScore.
questionnaireQuantitativeScore = sumOfAllCategoryNormalizedValues
The output from the questionnaireQuantitativeScore equation is the sum of the normalized category scores. It’s presented as the Risk Score on the record for the questionnaire.
The following example shows a risk score for a questionnaire.
Qualitative score for documents
Document Requests have a risk rating that is a qualitative score. The preliminary risk rating is based on the answer to the default question “Do you have document ‘document name’?”.
| Response | Risk Rating |
|---|---|
| Yes | Low |
| No or unanswered | High |
| N/A | Moderate |
The following example shows a risk rating for a document request.
After the document is reviewed, it might be found to be deficient, so the Third-party risk assessor can override the default rating. The assessment retains the current Risk Rating and the Original Risk Rating. The stated Risk Rating for each category is derived from the associated Risk Rating Scale.
The following example shows a categories related list that includes the original and current risk rating.
assessmentRating calculation
For any external assessment, the final rating for the assessment is calculated as the weighted average of the questionnaires and document requests within each third-party risk area.
The following equation is used to calculate the assessmentRating.
assessmentRating = (AVG (Questionnaire + Document Request for a risk area) * weight assigned to that risk area + (Questionnaire + Document Request for another risk area) * weight assigned to that risk area) / the sum of
the weights
- Questionnaire 1 = defined in the Security Risk Area
- Questionnaire 2 = defined in the Financial Risk Area
- Questionnaire 3 = defined in the Financial Risk Area
- Document Request 1 = defined in the Security Risk Area
| Risk Area | Scoring Method | Weight |
|---|---|---|
| Security Risk | Average Risk | 10 |
| Financial Risk | Max Risk | 20 |
assessmentRating = (AVG (Questionnaire 1 + Document Request 1) * 10 + MAX (Questionnaire 2 + Questionnaire 3) * 20) / (10 + 20).
The final rating is the overall assessment rating that considers the scores and ratings from all assessments conducted for a third-party or engagement. It’s calculated by taking the weighted average of the questionnaires and document requests within each risk area. This calculation process ensures that all relevant metrics, categories, and weights are taken into account based on how you defined these parameters and configurations. The calculation process and the factors involved can help you make informed decisions and take appropriate actions based on the final rating.