HR Glossary

What is Key Person Risk?

The business risk that arises when an organization depends heavily on specific individuals whose departure, illness, or absence would cause significant operational, financial, or strategic disruption.

Why it matters in hiring

Key Person Risk comes up whenever teams compare candidates, set policy or report on people data. Getting the definition right keeps decisions consistent, which is the same reason springhire scores every applicant against the same criteria rather than on impression.

Related terms starting with K

• Kafala System (Middle East)
• Key Performance Indicator (KPI)
• Kirkpatrick Model
• Knowledge Management
• Knowledge Transfer
• Kuendigungsschutzgesetz - Dismissal Protection Act (Germany)
• Kotter's 8-Step Model

Part of the springhire HR glossary, 1,150+ HR, payroll and recruiting terms defined. Free, no signup.