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Key Man Risk

Technical Finance Buzzword Finance

Dependence on one irreplaceable person — the finance term for a bus factor of one, applied to founders, rainmakers, and that one engineer. Insurers sell policies against it; org charts rarely fix it.

Heard in the wild

“The acquisition stalled on key man risk — the founder IS the product.”

Tone check: Technical

Being the key man is leverage and a cage. Companies eventually de-risk you, on their schedule or yours.

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