Kaplan-Meier curve

A Kaplan-Meier curve is a statistical chart used to show how the probability of an event changes over time. In a business context, it is typically used to analyze how long entities (e.g., companies, contracts, loans) remain active before a defined event occurs (such as dissolution, insolvency, termination, or default).

 

The X-axis represents time, while the Y-axis shows the probability of remaining event-free. The curve declines in steps whenever events occur, allowing users to identify risk phases, median duration, and long-term stability patterns.

 

Its key advantage is that it incorporates ongoing observations (entities that have not yet experienced the event), providing a realistic view of duration and structural risk.

 

In North Data’s Company Intelligence, Kaplan-Meier curves are used to assess time-dependent stability and risk dynamics across defined groups.