The distance investment risk measure, just like the taxonomic measure, is the value that incorporates the impact of all variables (financial and economic ratios) on the standing of sectors. At the same time, contrary to the taxonomic risk measure, it is structured in two stages. In the first step we calculate values of a partial ratio independently for each variable, by comparing the value of that variable for a given sector to two threshold values. The first is the most desirable value (the maximum threshold) considering the condition of sectors. The other is the least desirable value (the minimum threshold) considering the condition of sectors.

Ultimately, the value of group risk measures and the composite risk measure is obtained by calculating arithmetic averages of the respective partial ratios. For group risk measures, these are exclusively the efficiency ratios or structural ratios. The structure of the composite investment risk measure aggregates all partial ratios. Due to the appropriate structuring, both group risk measures and the composite risk measure are always within the range of [0;1].