Method
Identified vs recoverable: how we put a number on money at risk.
· 3 min readShare on LinkedIn
Any audit can produce a big number. The harder job is producing one you'd be comfortable defending line by line in front of a partner. That's why we report money at risk in two ways.
- Money at risk identified$20.7k · 2.3%
- Recoverable on a conservative basis$12.5k · 1.4%
Why the numbers differ
Identified is everything with hard evidence behind it. Recoverable is the part we would be comfortable defending as a realistic saving, line by line. We would rather publish the smaller number and be right.
Three rules we never break
- Every dollar is counted once, even if it has more than one problem
- Spend we couldn't verify is never added to money at risk
- We say identified, not saved, until action has actually been taken