Quick Reference: Covenant Response Cards

Objection "We pass, so why spend time on this?" A leader wants to skip the headroom discussion. Your line Passing tells us the test result; headroom tells us how much variance we can survive before the next test. Do not let a green result hide a shrinking buffer. It respects the pass while keeping the risk signal visible. Compare Covenant pass versus covenant comfort: what is the difference? A pass is a legal status; comfort is a risk judgment. "Can we just use the add-back and move on?" The model depends on an arguable adjustment. Use the agreement definition, but…

Sign up free — one personalized lesson every day, matched to your role and goals.

Already have an account? Sign in