I'mBoardDocs
Board OntologyCustomers

ARR at Risk

Sum of ARR from customers flagged "at-risk" by the customer-success team — typically driven by usage decline, low health score, executive turnover at the customer, missed milestones, or explicit churn intent. The board reads this as the worst-case near-term churn exposure if no intervention happens. Common pitfall: the "at-risk" definition drifts across CSMs and quarters; standardize the criteria (e.g. health score below threshold OR 30-day usage drop > X% OR cancellation request received) and version-control the playbook so the absolute number is comparable period-over-period. Pair with `percent_arr_at_risk` for the proportional read. — Customers KPI, I'mBoard-authored (editorial tier).

I'mBoard-authored (editorial tier)

No public third-party standard anchors this KPI yet, so I'mBoard authors and maintains the definition — transparently labeled as editorial tier. See the ontology methodology for the published vs editorial tier system and the back-attribution workstream.

Rogue ID: customers.arr_at_risk Type: Currency Domain: Customers

Definition

Sum of ARR from customers flagged "at-risk" by the customer-success team — typically driven by usage decline, low health score, executive turnover at the customer, missed milestones, or explicit churn intent. The board reads this as the worst-case near-term churn exposure if no intervention happens. Common pitfall: the "at-risk" definition drifts across CSMs and quarters; standardize the criteria (e.g. health score below threshold OR 30-day usage drop > X% OR cancellation request received) and version-control the playbook so the absolute number is comparable period-over-period. Pair with percent_arr_at_risk for the proportional read.

Formula

arr_at_risk = Σ(ARR of customers flagged at-risk by CS team). The "at-risk" flag itself is a company-specific definition (typical components: health score below threshold, 30-day usage decline, executive churn at customer, missed onboarding milestones, explicit churn signal). Document the flag rule in `customer_definition_note` so the number is comparable across periods.

Why it matters

Converts the qualitative CS pipeline into a board-readable dollar exposure. Forces the team to put a number on hand-wavy customer-health concerns and surfaces concentration risk (a single $500K at-risk account is a different conversation than fifty $10K accounts).

How to interpret

Always present alongside percent_arr_at_risk — $500K at-risk is a 5% problem at $10M ARR but a 0.5% problem at $100M ARR. There is no citation-grade industry benchmark for the absolute number; the >15% destructive threshold the ArrAtRiskGauge widget uses is internal heuristic, not an external standard. Trend month-over-month — sustained growth in arr_at_risk is the leading indicator that NRR will deteriorate next quarter.

Calculation policy

How an AI agent should compute this KPI from messy company data. Free-text rules consumed at reasoning time — not a deterministic DSL. The most common ways to get this wrong are listed under Common miscomputations.

Inclusion rules

  • Sum the contracted ARR of every customer flagged "at-risk" by the CS team as of the reporting date — a point-in-time exposure snapshot.
  • Use each at-risk customer's current contracted ARR (the exposure if they churn), consistent with sales.arr's contracted-recurring definition.
  • The "at-risk" flag is company-specific: standardize and version-control the trigger criteria (e.g. health score below threshold, 30-day usage decline > X%, executive churn at the customer, missed onboarding milestones, explicit churn/cancellation signal).

Exclusion rules

  • ARR of healthy / not-flagged customers.
  • One-time fees, services, and non-committed usage — same exclusions as ARR; this is contracted-recurring exposure.
  • Expansion pipeline or upside — this is downside exposure, not opportunity.
  • Customers already churned — their ARR is realized loss, not "at risk".

Required inputs

  • Per-customer at-risk flag with the documented, versioned trigger rule.
  • Per-customer contracted ARR as of the reporting date.
  • The at-risk-definition playbook version (so the number is comparable period-over-period).

Data-source priority

  • CS platform / health-scoring system joined to the ARR ledger by a stable account ID.
  • Manual CSM at-risk list joined to billing ARR as a fallback — flag the subjectivity.

Edge cases

  • A single large at-risk account vs. many small ones is a different conversation — surface the concentration alongside (one $500K account ≠ fifty $10K accounts).
  • At-risk flag toggling on and off within the period: take the flag state as of the reporting date (point-in-time), not the max during the period.
  • Customer at-risk AND in active expansion talks: still count the full at-risk ARR; the upside is tracked separately.

Validation checks

  • arr_at_risksales.arr — you cannot have more ARR at risk than total ARR.
  • Present with percent_arr_at_risk (= arr_at_risk ÷ sales.arr); the absolute dollar figure is meaningless without the proportion.
  • Non-negative.

Common miscomputations

  • Drifting "at-risk" criteria across CSMs or quarters — the trend then reflects bookkeeping, not customer health; standardize and version the flag.
  • Using recognized or invoiced revenue instead of contracted ARR for the exposure amount.
  • Reporting the absolute dollar figure without percent_arr_at_risk — $500K is a 5% problem at $10M ARR but a 0.5% problem at $100M ARR.
  • Including already-churned customers (realized loss, not risk) or netting expansion upside against the exposure.
  • customers.percent_arr_at_risk
  • customers.churn_risks
  • customers.top_customer_concentration
  • customers.net_revenue_retention
  • customers.gross_revenue_retention
  • sales.arr

Source

I'mBoard editorial — authored and maintained by I'mBoard, first published 2026-04-01. No third-party standard is cited for this KPI; when one emerges, the definition is back-attributed and promoted to the published tier (a minor version bump). Read the ontology methodology for the published vs editorial tier system, attribution rules, and dispute process.

Stage relevance

Company stagePriority
Series ACore
Series BCore
Series C+Core
PublicCore

Suggested for stages: Series A, Series B, Series C+, Public.

Default owning functions

  • Sales

Machine-readable

On this page