Identify
Separate factual, assumed, professional-pending and external risks
MTH-0003 / Professional module
Risk Pricing and Contractualisation
A professional module embedded in diligence, valuation and structuring, translating risk into value, funding, terms, accountability and stop conditions.
METHOD POSITION
Professional module
Embedded in valuation, diligence and transaction structuring
WHEN TO CALL
These signals call for a structured method
- 01
A material uncertainty exists before pricing
- 02
Complex terms are being used to solve a fundamental disagreement
- 03
A known risk has no explicit bearer
DECISION GATES
Turn the method into gates that change action
Quantify
Estimate value, cash, timing and tail-liability ranges
Assign
Name the buyer, seller, funder or operator that bears the risk
Choose response
Compare exclusion, repricing, staging, conditions, security, governance and stop
Retain residual risk
State what remains after terms and who holds the stop right
REQUIRED OUTPUT
01Risk-to-value table
02Risk–term–owner map
03Residual-risk register
04Switch and stop card
STOP CONDITIONS
A method must also show when not to proceed
Terms are being used to repair a flawed business or asset judgment
The assigned bearer cannot perform
Worst-case loss and tolerance cannot be explained
RELATIONSHIPS
Cases generate the method; judgments and principles constrain it
PUBLIC BOUNDARY
This is Howard's current public method structure. It does not replace project-specific finance, legal, tax, valuation, regulatory or board judgment. Thresholds, risk appetite and final decisions remain with the responsible owners using complete facts.