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Key Person Risk
Definition
The vulnerability a company faces when critical knowledge, relationships, or capabilities are concentrated in a small number of individuals. Key person risk is a major factor in intangible asset valuation and due diligence, particularly for professional services firms, early-stage companies, and fund management teams.
Related Terms
Key Performance Indicator (KPI)
Knowledge Capital
Knowledge Economy
Knowledge Spillovers
Knowledge-Intensive Business Services (KIBS)
Related FAQ
How do you value a company's team and talent as an intangible asset?
Talent value is assessed via domain expertise, retention rates, and competitive replaceability. A founding team with strong execution history is a significant intangible asset.
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