How to Use This Framework
This assessment identifies your most significant cash flow vulnerabilities across five risk dimensions: runway visibility, revenue concentration, working capital management, financing headroom, and forecast accuracy. It is designed for CFOs, finance directors and founders who want a structured, scored view of where their cash position is exposed and what to prioritise.
Score each question: 2 = fully in place, 1 = partially in place, 0 = not in place. Total your scores across all 20 questions (maximum 40 points) and use the scoring table at the end to determine your risk band. Any area scoring 4 or below out of 8 warrants immediate management attention.
Assessment Areas
Area 1: Runway & Burn Visibility
Q1. A 13-week cash flow forecast is prepared and reviewed every month without exception
Q2. Current runway is known precisely: months of cash remaining at current burn rate
Q3. Three scenario forecasts (base, optimistic, conservative) are maintained and updated monthly
Q4. The board reviews cash position and runway at every meeting
Area 2: Revenue Concentration Risk
Q5. No single customer represents more than 20% of total revenue
Q6. Top 5 customers combined represent less than 50% of total revenue
Q7. All major customer contracts have renewal dates known and tracked at least 6 months ahead
Q8. Revenue is diversified across at least 2 distinct channels, segments or geographies
Area 3: Working Capital Management
Q9. Average debtor collection period is within agreed terms — no systematic late payment issues
Q10. A formal credit control process is in place: overdue invoices escalated and followed up
Q11. Payable terms are actively managed: supplier terms are optimised without damaging relationships
Q12. Inventory or work-in-progress (if applicable) is monitored: no unexplained build-up
Area 4: Financing & Covenant Headroom
Q13. All financial covenant thresholds are known and monitored monthly against actual performance
Q14. Current headroom against each covenant is calculated and reported to the board
Q15. An emergency financing plan exists: bridge, shareholder loan, or facility drawdown option available
Q16. The business has at least 3 months of operating costs available in undrawn facilities or cash
Area 5: Controls & Forecasting Accuracy
Q17. Actual cash vs forecast is tracked: variance is analysed and forecast methodology improved
Q18. A minimum cash floor is defined and formally approved by the board
Q19. All major committed outflows for the next 90 days are identified and scheduled in the forecast
Q20. Cash flow forecasting is owned by a named individual with clear accountability to the board
