Risk Ratings Reports

What’s included in Risk Ratings Reports.

Updated over a week ago

What are IBISWorld’s Risk Ratings Reports?

IBISWorld’s Risk Ratings Reports is a collection of reports that provides insight into the risks facing industries. These reports will help you quickly understand the non-financial risks of thousands of global industries so you can identify and manage industry risks on the horizon.

With our numerical assessment of expected short-term industry risk, you can compare a company’s current position against the broader industry environment. Information is based on in-depth analysis of the structural, growth and sensitivity risks facing an industry.

How often are Risk Ratings Reports updated?

Reports are updated monthly to incorporate the latest industry analysis and business environment forecasts. Each update represents a risk score for the outlook year based on the current data within our database.

Risk Ratings Reports contents

Each Risk Ratings Report is broken down into four chapters: Risk Overview, Structural Risk, Growth Risk and Sensitivity Risk. Each one includes in-depth charts and analysis that explain the ‘why’ behind the industry’s score.  

Risk Overview

In each report, you’ll find an easy-to-understand risk score that quantifies the level of risk that operators within the industry face. Scores range from 1 – 9, with higher scores indicating a riskier operating environment. Each score is supported by forward-looking analysis and charts on the structural, sensitivity and growth risks facing an industry.

Industry Definition and Activities

This section offers a quick summary of the industry, including its definition, primary activities and major products and services. 

Industry Risk Score 

Here you’ll find a clear table and text explaining how risk scores are calculated over time. The chart breaks down the industry’s overall risk score into its 3 components (structural, growth, sensitivity), which are scored separately, then weighted and combined to derive the overall score. Risk scores are based on a scale of 1 - 9, where 1 represents the lowest risk and 9 the highest. 

The Industry Risk Score table

Risk Ratings Analysis 

Explore further into the various factors affecting how industry risk is scored with our in-depth analysis and understandable charts outlining the risk levels and trends for the industry, sector and national economy over time. Analysis is further broken down into the 3 components of the risk score: structural, growth and sensitivity. 

The Risk Ratings Analysis graph

Structural Risk

The report’s Structural Risk chapter includes industry-specific operating conditions and unquantifiable factors from the industry report. Structural Risk accounts for 25% of the industry’s overall risk score. This section addresses the impact of the fundamental characteristics common to all industries, including levels, trends and analysis for each of the 7 components of Structural Risk. Those components are barriers to entry, competition, industry exports, industry imports, level of assistance, life cycle stage and volatility of the industry.

The Structural Risk Score table

Growth Risk

The Growth Risk chapter addresses industry revenue for the previous 2 years and forecasted revenue for the coming year. Growth Risk makes up an additional 25% of the Overall Risk Score. This section provides analysis of forecast industry revenue growth in comparison with past performance. A high industry growth rate is associated with lower risk for operators in that industry.

The Growth Risk Score table

Sensitivity Risk

The Sensitivity Risk Chapter includes macroeconomic variables relevant to the industry. The score is based on annual changes in the data and accounts for 50% of the Overall Risk Score. The model assumes that this external risk is often more severe. 

The Sensitivity Risk Score table

For additional questions regarding Risk Ratings Reports, please contact your Client Relationship Manager. If you don’t have an IBISWorld account, please contact us to learn more about our membership options.

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