Understanding Key Person Risk

What is a Key Person?

Think of that one person in your business who has sole responsibility for their area. The one who is totally reliable, who knows the job inside out. That person who you depend on to do it just right. Their role is specialist, potentially niche. Can you see them?

This is an example of one of your key people and this is where a business risk lies.

It is highly likely that this person feels like part of the furniture, they’re dependable and always deliver. They are rarely away from work, but could your business continue to be as effective if they suddenly weren’t there? Perhaps for a short period, but what if they were away from work unexpectedly or for more than a few weeks. Do you have the skills and expertise to cover or to cope? It won’t happen, right?

This person was me and this happened to my previous employer. I was in work one day, carrying out an essential function and totally unexpectedly on the operating table the next day. What followed was a round of significant surgery, recovery, rehab and all together six months away from my role as Pensions Manager and Pension Trustee secretary.

So what did the company do?

Their solution was easy, they turned to Dalriada Trustees Ltd. Dalriada were already the Professional Trustee for the DB and DC pension schemes, so this made perfect sense. The company were lucky, not all solutions are quite so simple. Dalriada stepped in and it was business as usual, mostly. There were, of course, areas of my role that weren’t easily quantified. You know, the bits that don’t necessarily sit within the job description, but without them the scheme doesn’t run quite as smoothly.

Dalriada, I have to say, did a great job. So good in fact that we permanently engaged their pension scheme secretarial services when I returned to work, and what a relief this was. My pensions manager role had changed so much during my time away due to one change in regulation or legislation… or two! As you can see, I was impressed enough to now work for them, being there for other schemes who need much needed or unexpected support.

Not sure where to start?

Dalriada can help. Whether you need a Professional Trustee, help with Pensions Management or Pension Secretarial, we can help long term, short term and in an emergency. To explore the services we offer and discuss the specific needs of your scheme, reach out to any one of the Dalriada team or to me directly.  We can definitely help you do it the right way, we may have “A Better Way”…

Just another sales pitch? No! Hoping you will consider your key person risk? Yes!