What are the limitations of models used to measure concentration risk?

Concentration risk refers to the amplified losses that may occur from having a large portion of your money in a particular investment. A Rule 10b5-1 Plan, approved by your company and executed in accordance with SEC law, can provide flexibility in divesting your concentrated position. Consider ... i.e., infinitely granular portfolios. This results in potential underestimation of risk and capital requirements. 2. Concentration in credit portfolio is the ... Digital Concentration Risk ... Brace for global system failures in 2025. The resilient will manage the impact. The rest will face repeated operational downtime. 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 ... Let's take a look at why you might want to consider spending more time properly identifying, and managing, concentration risk with your vendors. Apr 15, 2025 ... If you're looking for a benchmark, one rule of thumb suggests that you are exposed to concentration risk if you hold more than 10-15% of your ... 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 ... Prudential Standard GPS 116 Capital Adequacy: Insurance. Concentration Risk Charge (GPS 116) sets out APRA's requirements in relation to insurance ... Jul 30, 2020 ... Financial institutions should assess the impact a potential arrangement will have on their overall operational risk before outsourcing. As part ...