RDI Methodology

Risk Disclosure Index

How to read the AGTC Risk Disclosure Index

The AGTC Risk Disclosure Index, or RDI, benchmarks how clearly companies disclose enterprise risk governance, risk-management processes, risk specificity, evidence support, and standards-aligned risk-management concepts in public filings.

RDI is designed for comparative disclosure intelligence. It evaluates what a company publicly discloses, not whether the underlying risk-management program is effective in practice. RDI can be applied to any defined coverage universe, including large-cap indexes, sector groups, custom portfolios, or client-selected peer sets.

Disclosure quality SEC filing evidence Peer comparison Standards alignment Coverage universe

What RDI measures

RDI measures the specificity, breadth, and decision-usefulness of public risk disclosure across major enterprise risk dimensions, including governance, ERM process, cyber, operational resilience, legal/regulatory risk, financial risk, climate/environment, geopolitical risk, and monitoring.

What RDI does not measure

RDI does not certify internal control effectiveness, predict risk events, or rate the absolute level of company risk. A higher score means stronger public disclosure evidence, not necessarily lower business risk.

How peers are selected

Peer tools prioritize same-sector records within the selected RDI universe and allow manual additions. Snapshot mode compares one selected coverage year; trend mode compares available historical records where imported.

Core RDI headings

RDI Score

Public score from 0 to 100 summarizing risk-disclosure quality across the RDI rubric.

Grade

Public grade band derived from the RDI score: A, B, C, D, F, or NR where evidence is insufficient.

Band

Plain-language disclosure maturity band, such as Leading, Advanced, Developing, Limited, or Sparse / Minimal.

Rank

Overall rank within the scored RDI universe. The public rank is based on hidden rdi_rank_score to avoid artificial ties while displaying the public RDI score.

Sector Rank

Company rank among scored peers in the same GICS sector.

Sector %ile

Within-sector percentile based on the hidden ranking score. Higher percentile indicates stronger relative disclosure quality.

Evidence-quality headings

Evidence %

Share of RDI indicators with responsive public evidence in reviewed SEC filings.

Depth

Evidence-depth score reflecting specificity, process detail, mitigation/monitoring evidence, and evidence confidence.

Source Div.

Quality-weighted source-diversity score showing whether evidence is supported across relevant filing sources rather than isolated references.

Standards

Diagnostic standards-alignment score based on public evidence related to risk context, risk criteria, assessment depth, treatment, monitoring, reporting, and change/improvement.

Company-specific Coverage

Share of indicators with company-specific, rather than purely generic, risk disclosure evidence.

Strong Evidence Coverage

Share of indicators supported by stronger evidence patterns such as explicit process, governance, mitigation, monitoring, or multi-source support.

Methodology footnote

  • Source basis: RDI is based on public SEC filing evidence, including 10-K, DEF 14A, recent 8-Ks, and extracted filing sections where available.
  • Ranking basis: Public pages display the public RDI score. Sorting and percentile calculations may use a hidden rank score to avoid artificial ties among companies with the same displayed score.
  • Standards alignment: The Standards score is a diagnostic disclosure metric aligned to risk-management concepts such as context, criteria, assessment, treatment, monitoring, reporting, and change/improvement.
  • Coverage universe: Public labels refer to the selected RDI universe rather than a fixed index. Current and future universes may include large-cap indexes, broader public-company universes, sector cohorts, custom portfolios, or client-selected peer sets.
  • Use case: RDI is intended for peer benchmarking, governance analysis, diligence screening, and disclosure-improvement workflows.