Mitigation Credibility
Are stated risk mitigations genuine or illusory?
Assessment Spectrum
Assessment Labels
Every analysis assigns one of 4 categorical labels to this signal. Labels represent a spectrum from best to worst assessment.
Stated mitigations are unlikely to provide meaningful protection. Terms may allow counterparties to exit, or scale is insufficient.
Mitigations provide some protection but have significant gaps or untested assumptions. May help in moderate stress but not severe.
Mitigations are substantive and have been tested under stress. Provide real protection for moderate scenarios but may be unproven for tail events.
Mitigations are robust, well-tested, and cover tail-risk scenarios. Multiple layers of protection with verified counterparty commitment.
What This Signal Captures
Emerges From
This derived signal emerges from analysis synthesis within these lenses when company-specific patterns warrant the additional categorization.
How to Interpret
Companies often cite risk mitigations (commitments, agreements, hedges) without investors being able to verify their robustness. This signal assesses whether stated protections are genuine based on terms, counterparty behavior, and stress-test evidence.