Agency Composite Risk Checklist
These are compound conditions — multiple metrics breaching simultaneously — that signal immediate intervention is required. I extracted these from sector-specific intelligence frameworks built over 29 years of CFO experience.
⚠ Payroll Stress Warning (30-day horizon)
- Top-client concentration >25%
- AND DSO >45 days
- AND contracted retainer coverage <75% of fixed payroll
When all three are true simultaneously, payroll stress is within 30 days. This is not a "monitor" situation — this is an "act this week" situation.
⚠ Scope Control Failure
- Unbilled WIP >10% of monthly fees
- AND write-offs >5% of billings
- AND revision rounds beyond contract scope
This pattern means your project delivery is absorbing costs that should be in the client's budget. Every revision round that is not billed is margin you will never recover.
⚠ Delivery Quality Collapse
- Regretted attrition >12% annualized
- AND freelancer premium above normal rates
- AND client complaints after team handover
Your best people are leaving, replacements cost more, and clients are noticing. The quality gap is visible to the market before it is visible in your financials.
⚠ Survival Mode
- Signed revenue coverage <80% of next-quarter payroll
- AND pipeline slippage >20%
- AND cash runway <13 weeks
You are three months from a cash crisis with insufficient pipeline to fill the gap. The fix is not marketing — it is a commercial restructuring of your delivery model and cost base.
What to do next
If you recognise any of these patterns, you need more than a checklist. The Margin Note gives you a commercial read of your specific situation. If the patterns are compound (2+ warning boxes active), the Diagnostic Sprint ($1,500–2,500) is the right next step.
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