Fig. 01 · Glossary
Key-Person Risk
Also known as Key Man Risk, Founder Dependency
Definition
Key-person risk is the value dependency created when critical customer relationships, technical knowledge, sales motion, delivery judgment, or decision rights sit with one person. In founder-led technology firms, it is one of the most common exit-readiness gaps.
Key-person risk is not fixed by telling someone to document more. It is fixed by moving decisions, relationships, and knowledge into a repeatable operating system.
Buyers discount key-person risk because it threatens transferability. If the company cannot perform without the person, the buyer is not buying an asset. They are buying a retention negotiation.
Human Renaissance glossary · operator-grade definitions · Research methodology
