Supplier risk scoring assigns numerical ratings to vendors by assessing factors such as financial stability, cybersecurity posture, geographic location, compliance history, and operational capability. Scores enable prioritized monitoring, differentiated controls, and informed sourcing decisions. Methodologies range from simple weighted checklists to sophisticated algorithms incorporating real-time data feeds. For instance, a pharmaceutical manufacturer might assign higher risk scores to single-source active ingredient suppliers in geopolitically unstable regions, triggering enhanced monitoring and dual-sourcing initiatives.