The definition governs the calculation
A ratio label is not a calculation policy. Begin with the executed agreement and its amendments, the test period, maintenance or springing mechanics, permitted add-backs, and cure rights. Record which reviewer approved the interpretation and version it alongside the calculation.
Separate extraction from judgment
One agent extracts reported figures from the financials; a deterministic engine recomputes each test; a verifier compares the result with the compliance certificate. Differences are queued for review. The system must never silently substitute management’s preferred definition for the governing document.
Preserve evidence across periods
Store the source document and version behind every period’s figures. A headroom trend becomes decision-useful when the portfolio manager can see whether movement came from operating performance, incremental debt, or a revised adjustment.
Give every alert an owner
An alert should carry its evidence, the comparison that triggered it, a materiality score, and a suggested follow-up question. A designated portfolio professional determines the response and records the disposition — building a surveillance record the next reviewer can audit.