Key Person Risk
From Open Risk Manual
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Definition
Key Person Risk indicates the risk generated when significant organizational knowledge, visibility, status or performance rely to a significant degree on a single individual. This reliance exposes the organization to the risk of significant financial or reputational loss if the individual ceases to be part of the organization (e.g. due to health, career choices etc.)
Issues and Challenges
Key person risk is a form of Concentration Risk, albeit it is not traditionally discussed alongside the traditional types of concentration.
