Better Business: How to manage key man risk

As any business owner will tell you, a firm’s most important asset is its people. Conversely, however, this means that they are also a firm’s biggest liability, particularly when they leave. The loss of a key person can be a real blow to a firm’s finances, confidence and company image. Financial advisory firms are particularly vulnerable to key man risk as the nature of advice often means advisers have personal relationships with their clients, who will often follow the adviser out the door. Despite this, there are measures advisers can take to mitigate the damage the departure of a key ...