Key-person dependency re-rated above appetite
RSK-014 residual rating moves from amber to red — 41% of fee income runs through three administrators.
Tom Carrington opens RSK-014. The incident has materialised what was, until Monday, an inherent concern: the firm's revenue is concentrated on a small group of administrators, and one of them has just demonstrated that a single absence creates a real client-impact failure. Tom pulls the fee-allocation report — 41% of fee income flows through structures touched by just three administrators. He updates the residual likelihood from 'possible' to 'likely' and the residual impact from 'moderate' to 'major'. The 5×5 heat-map shifts RSK-014 from amber to red, taking it above the board's stated appetite for key-person risk.
Tom updates likelihood and impact with a one-paragraph rationale citing the unposted distribution and the 41% fee-allocation concentration.
RiskAlign recalculates the residual score, snapshots the previous score with a hash, and flags the appetite breach in real time on the appetite dashboard. The risk is also tagged under the Strategic / Concentration branch because the fee-allocation evidence is concentration-shaped, not purely people-shaped.
The risk register is current the same afternoon, not at month-end. The change is rationale-backed and reversible.