How can qualitative factors be incorporated into concentration risk assessments? What is the relationship between concentration and diversification?

Sep 20, 2023 ... Customer concentration risk is a primary threat to SaaS businesses. However, it's easy to avoid with some foresight and planning. Carbon-related concentration risk can be defined as the risk that a subset of a given bank's exposures could suffer simultaneous, significant losses in value. Fractals and Scaling in Finance: Discontinuity, Concentration, Risk. Selecta Volume E 1997th Edition ISBN-13: 978-0387983639, ISBN-10: 0387983635 Dec 14, 2006 ... This paper addresses concentration risk, one of those risks mainly captured under Pillar 2. 4. The document puts the emphasis on high level ... 88.97% of Ginnie Mae's approximately $2.6 trillion in guaranteed pooled loans are owned by 30 mortgage companies, of which 22 of them are nonbank institutions. Apr 24, 2025 ... Managing concentration risk in credit portfolios requires financial institutions to have an effective credit risk review function. Portfolio concentration is a uniquely difficult challenge for business owners. On average, owners of closely-held companies have up to 80% of their net worth ... The concentration risk in banks' credit portfolios arises mainly from two types of imperfect diversification: “name” and sector concentrations (BCBS, 2006b). Jun 16, 2023 ... Risk concentrations can vary significantly by institution. Some concentration risk sources are more obvious, including borrowers relying on the ... Feb 7, 2014 ... Our results show a positive association between customer concentration and a supplier's cost of equity, and this relation is more pronounced for ...