What are the challenges in communicating concentration risk to stakeholders?

Jun 15, 2022 ... The risk of amplified losses that may occur from having a large portion of your holdings in a particular investment, asset class or market segment. Aug 8, 2024 ... Explore stock market concentration risks, from Nokia and Volkswagen to today's tech giants, and how fund rules ensure diversification. Apr 24, 2025 ... Managing concentration risk in credit portfolios requires financial institutions to have an effective credit risk review function. Dec 22, 2016 ... Concentration risk has a different meaning when talking about third-party vendor management. Regulators are looking at two main concerns. We hypothesize that a more concentrated customer base increases a supplier׳s risk, which results in a higher cost of equity. What is concentration risk? Most investment professionals say that concentration risk exists when more than 10% of your portfolio is tied up in one asset. The concentration risk in banks' credit portfolios arises mainly from two types of imperfect diversification: “name” and sector concentrations (BCBS, 2006b). Following are six strategies that offer the opportunity to reduce concentration risk in your portfolio, as well as potentially reduce asset risk or tax ... Oct 31, 2024 ... The Hidden Hazard in Climate Portfolios: Equity Concentration Risk ... If climate portfolios are positioned in the same giant US stocks held in ... Digital Concentration Risk ... Brace for global system failures in 2025. The resilient will manage the impact. The rest will face repeated operational downtime.