How to get the most out of the Risk Module
To ensure the risk analysis is accurate and tailored to your business, there are a few data inputs and customization options you should know about:
Revenue data
The Risk Module delivers the most accurate results when each site has an associated economic value, as the Financial Impact is calculated as a percentage of that value.
Within the Site View, you can enter:
- Revenue for direct operation sites
- Customer revenue for downstream sites
- Supplier spend for supplier sites
These values reflect the site’s role in your value chain. You’ll be prompted to add them during site creation or data import, and they can be edited at any time in the Site View or under Site Management. If revenue data for a site is unknown or unavailable, you can enter a default site revenue or leave it at zero - though a zero value will exclude that site from aggregated financial calculations.
Total Company Revenue
Some risk calculations - specifically company-wide transition risks such as pollution fines or deforestation-related liabilities - are based on your business 'total company revenue. This value is also used to categorize the Financial Impact from Very Low to Very High. Users are prompted to provide your annual company revenue (a single figure) in the settings. If this value is not entered, the module may not be able to calculate or categorize risk impacts accurately.
Override Default Financial Impacts and Probability of Occurrence
Nala provides default values for both the Financial Impact (as a share of revenue) and the probability of occurrence for each risk. These values are derived from research and linked to the site’s economic activity. However, company-specific knowledge or local conditions may justify different assumptions.
The Risk Module allows users to override these defaults to ensure that risk estimates better reflect their operational reality:
- In the Global Settings within Site Management, you can adjust the default annual probability linked to your activities for each risk and Likelihood level.
- You can also modify the default Financial Impact percentages for any activity–risk combination.
Over time, these inputs can be refined to make the assessment more representative of your company’s specific context.
This functionality can also support scenario analysis. For example, you can simulate stricter future regulations by increasing a probability value or assess the effect of mitigation measures by lowering an impact percentage to estimate the resulting reduction in expected losses.
Keep Data Current
Nature-related risk is dynamic. The environmental data (like water scarcity or tree cover loss) are periodically updated on Nala’s platform. You should also review and update your site data whenever significant changes occur in operations, supply chains, or locations. Keeping both environmental and company data up to date ensures that your risk outputs remain accurate and decision-relevant. We recommend reviewing the Risk Dashboard after any major operational change and at least once a year as part of your regular risk assessment cycle.