Greater default risk is believed to exist when there is significant organizational reliance on an individual,especially one who may be nearing retirement.

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When an organization relies heavily on an individual, especially if that person is nearing retirement age, there is greater default risk. This is because if that individual were to unexpectedly leave or experience health problems, the organization's operations could be severely disrupted. Additionally, the loss of their knowledge, skills, and experience could be difficult to replace, leading to further challenges and potentially increasing the risk of default.

Greater Default Risk Is Believed to Exist When There Is