We produce a Risk AFE: the board-ready capital allocation case for the two decisions inside your risk program — what to mitigate, and how to structure the insurance program. Most CFOs do not run this analysis on risk today because the loss data and benchmarks are not in-house. At mid-market scale, what your risk program actually costs (premium, retained losses, mitigation spend, and administration) runs 5 to 15 percent of EBITDA. The Risk AFE turns that cost into a roadmap for recovery: operating margin visible on the monthly P&L, enterprise value visible at the term sheet. Today, you likely make these decisions on broker recommendation, not documented analysis you own.
Two decisions ready for management approval: mitigation investment and insurance program structure, both informed by NPV, IRR, payback, sensitivity, and Monte Carlo scenario analysis. Enterprise value translation via EBITDA volatility multiplied by industry multiple, sourced to Damodaran NYU. You receive the AFE fully drafted — same format as the capex AFEs your team already routes.
See how the Risk AFE works