Business Pitch Dictionary by pitch.dog
Enterprise risk & controls · Core

Concentration risk

Also called: concentration exposure

ELI5

Risk created by excessive dependence on one counterparty, market, product or exposure.

Used in conversation

“Compare concentration risk with the same cohort and period before drawing a conclusion.”

Pitch context

You will see “Concentration risk” in board papers, contracts, policies, risk registers and compliance reports when the discussion reaches enterprise risk & controls.

Why it matters: In enterprise risk & controls, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 3

Direct term-level sources and supporting source families.