at what level can we expect the cap raise?, page-83

The risk analysis is best understood as customer risk.

Companies with large numbers of small value clients are inherently lower risk. For example a telecom or utility with millions of customers. One peeved customer makes absolutely no difference to them.

Companies with a small number of customers are the highest risk. Examples would be suppliers to auto companies and mining contractors. Banks should be low risk with their customer base but can fall into the second category when they get greedy and overlend to a narrow group of companies or sector.

FGE is a lesson in this basic form of risk appreciation. Contracting is a business where you need to be big to diversify risk (i.e. Leightons). Small companies can do very well until the point of the contract dispute or customer financial difficulty..