Operational Risk Index Methodology Document

This document is a methodology guide for the Operational Risk Index developed by BMI. It outlines the scoring system that quantitatively compares the operational challenges across over 200 countries and territories. The index utilizes a scale from 0 to 100, where 0 indicates the lowest risk and 100 indicates the highest risk, providing a clearer, industry-standard assessment. The methodology has been updated to reflect a new scoring system following BMI's acquisition of GeoQuant. The index is composed of four main risk categories: labour market, trade and investment, logistics, and crime and security, each contributing equally to the overall score. Each category is further divided into sub-categories that assess specific factors affecting operational risk. The document details the various indicators and their weightings used in calculating the scores, as well as the data sources and governance processes that ensure the integrity and independence of the index.