What are the potential consequences of high concentration risk?

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 ... Market liquidity risk: The difficulties in liquidating, purchasing, or switching investment assets quickly are common problems for a large investment portfolio. Dec 6, 2006 ... The guidance sets forth sound risk management practices that an institution should employ when it has CRE concentration risk. Credit ... Dec 22, 2016 ... Concentration risk has a different meaning when talking about third-party vendor management. Regulators are looking at two main concerns. The aim of this paper is to determine a key figure, which makes concentration risk measurable. Keywords Issuer Concentration, Diversification, Rating, Default ... Mar 24, 2021 ... Tenant concentration risk is the risk that the loss of a large tenant can have a negative impact on the financial performance of a shopping ... Sep 1, 2010 ... These Guidelines follow a holistic approach which aims at ensuring sound overall concentration risk management. Mar 16, 2023 ... And concentration in any sector—agriculture, leisure and accommodation, etc.—can eventually spell trouble. “An idiosyncratic event in such ... Concentration risk is the risk of over-reliance on, or excessive exposure to, a type of risk, counterparty, asset class, industry or region. ... concentration risk towards central counterparties and the counterparty risk on centrally cleared derivative transactions. Proposal for a DIRECTIVE OF THE ...