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.
- 1INC-0301 is direct evidence that the firm's existing cross-training and cover controls did not catch a single-person dependency on a material book — the residual rating must move to reflect that.
- 2Appetite for key-person risk is set at 'amber and below' in the appetite statement approved by the Board on 04 Mar 2026.
- 3Moving the residual above appetite is what triggers the stage 4 KRI breach and the stage 7 board-pack regeneration.
Ardennes is a fictional Jersey trust company. All names, timestamps, hashes and figures in this tour are illustrative.