Key Person Risk
The risk that an organization or project suffers losses because a core individual departs, becomes incapacitated or suffers reputational damage; it is common in funds and companies that depend heavily on individual judgment.
Core Facts
Timeline (last 90 days)
Key-person risk refers to an organization relying excessively on a single decision-maker.
In mature listed companies, key-person risk is usually mitigated through clear succession plans, board checks and balances, and executive pipelines.
Corporate governance research generally holds that the sudden departure of a founder-CEO brings higher "key-person risk."
Key person risk is a concept in corporate governance, referring to a company's over-reliance on a single core individual, whose personal conduct, health, or legal problems may cause a major impact on the company.
All Facts (4)
Key person risk is a concept in corporate governance, referring to a company's over-reliance on a single core individual, whose personal conduct, health, or legal problems may cause a major impact on the company.
70%UnverifiedKey-person risk refers to an organization relying excessively on a single decision-maker.
50%UnverifiedIn mature listed companies, key-person risk is usually mitigated through clear succession plans, board checks and balances, and executive pipelines.
50%UnverifiedCorporate governance research generally holds that the sudden departure of a founder-CEO brings higher "key-person risk."
50%