Key Man Risk

Key Man Risk
The (corporate) danger of over-reliance on one or a few individuals.

The recent downgrading of Berkshire Hathaway Inc.’s credit rating by a number of agencies was attributed, in part, to the issue of key man risk – the threat posed to a company from over-reliance on the skills of one or a few individuals.

In March, the ratings agency Fitch lowered Berkshire Hathaway’s rating from AAA to AA-plus, noting:
[Berkshire Hathaway's] ratings also continue to reflect Fitch long-standing concerns with respect to “key man” risk in the form of the company’s chairman, Warren Buffett. Fitch views this risk as unrelated to Mr. Buffet’s age, but rather Fitch’s belief that [Berkshire Hathaway's] record of outstanding long-term investment results and the company’s ability to identify and purchase attractive operating companies is intimately tied to Mr. Buffett.


Dictionary of unconsidered lexicographical trifles. 2014.

Look at other dictionaries:

  • Risk — takers redirects here. For the Canadian television program, see Risk Takers. For other uses, see Risk (disambiguation). Risk is the potential that a chosen action or activity (including the choice of inaction) will lead to a loss (an undesirable… …   Wikipedia

  • Man Group — plc Type Public company (LSE: EMG) Industry Financial servi …   Wikipedia

  • Key disclosure law — Key disclosure laws, also known as mandatory key disclosure, is legislation that require individuals to surrender cryptographic keys to law enforcement. The purpose is to allow access to material for confiscation or digital forensics purposes and …   Wikipedia

  • List of D.Gray-man characters — Many of the Black Order members as they appear in the anime adaption. The D.Gray man anime and manga series features a cast of characters created by Katsura Hoshino. The series is set at the end of a fictional 19th century during which the Black… …   Wikipedia

  • List of Iron Man: Armored Adventures episodes — The following is an episode list for the Marvel Animation television series Iron Man: Armored Adventures, which is based on Iron Man, the Marvel Comics character. The series began regular broadcasts on April 24, 2009.[1] In Australia, where the… …   Wikipedia

  • The Honourable Man — Infobox Dad s Army episode number episode name=058 The Honourable Man script=Jimmy Perry and David Croft director=David Croft producer=David Croft recorded=8/7/73 original transmission=28/11/73 8.00pm series=Six length=30 minutes viewing… …   Wikipedia

  • Sarah's Key — Theatrical release poster Directed by Gilles Paquet Brenner Produced by …   Wikipedia

  • List of Mega Man Battle Network characters — The following is a list characters from both the Mega Man Battle Network series of video games, and the MegaMan NT Warrior (Rockman EXE) anime and manga. Note that when there is a discrepancy between the English and Japanese names, the English… …   Wikipedia

  • Nowhere Man (TV series) — Nowhere Man Promotional poster Genre Drama Science fiction Created by Lawrence Hertzog Starring …   Wikipedia

  • Grizzly Man — Infobox Film name = Grizzly Man caption = Theatrical release poster director = Werner Herzog writer = Werner Herzog narrator = Werner Herzog cinematography = Peter Zeitlinger editing = Joe Bini producer = Discovery Docs Lions Gate Films starring …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”