Key Person Risk
A concept in investment analysis referring to the risk that the value of an organization is overly concentrated in a small number of individuals. It typically manifests through valuation discounts, increased volatility and event-driven sell-offs.
Timeline (last 90 days)
Key Person Risk refers to the risk that an organization's value is overly concentrated in a small number of individuals, and in investment analysis it is usually regarded as a hidden risk exposure.
The market commonly uses "event-window excess return" to measure the impact of key person risk: subtract the industry index or broad market gain over the same period from the actual decline on the rumor day, and the difference is the market's pricing of the event itself.
All Facts (2)
Key Person Risk refers to the risk that an organization's value is overly concentrated in a small number of individuals, and in investment analysis it is usually regarded as a hidden risk exposure.
50%UnverifiedThe market commonly uses "event-window excess return" to measure the impact of key person risk: subtract the industry index or broad market gain over the same period from the actual decline on the rumor day, and the difference is the market's pricing of the event itself.
50%