What is concentration risk?

A risk concentration refers to an exposure with the potential to produce losses large enough to threaten a financial institution's health or ability to maintain ... 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 20, 2024 ... Overexuberance for all things AI can create concentration risk. See how we're curating diversified exposure designed to perform over the long ... Aug 9, 2018 ... Beware of Customer Concentration Risk ... One of the biggest risks in M&A is customer concentration risk. It is hard to avoid as a business owner; ... Jun 29, 2023 ... The investor, therefore, has a high level of concentration risk because if company C stock value falls more than the others, 60% of the ... Risk concentrations come in many shapes and forms. Concentration risk can emanate from items such as the financing of certain commodities, utilization of unique ... Sep 2, 2010 ... Inter-risk concentrations may also arise where exposures to one entity or closely related groups of exposures (for example industry or ... Jan 1, 2022 ... The risks arising from the strength or extent of a firm's relationships with, or direct exposure to, a single client or group of connected clients. Concentration risk is usually monitored by risk functions, committees and boards within commercial banks and is normally only allowed to operate within ... Market liquidity risk: The difficulties in liquidating, purchasing, or switching investment assets quickly are common problems for a large investment portfolio.