What is customer concentration risk? Why is relying heavily on a few customers risky?

We present new reference statistics for the degree of supply chain's exposure to geographic concentration risk. 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; ... Concentration risk is the risk of over-reliance on, or excessive exposure to, a type of risk, counterparty, asset class, industry or region. May 15, 2022 ... What is Concentration Risk and How Can You Mitigate It? ... Putting all your eggs in one basket speaks to the essence of concentration risk. Apr 30, 2010 ... ... concentrations arising from correspondent relationships (correspondent concentration risk). The guidance highlights the need for ... Jan 30, 2025 ... Concentration Risk is a general term denoting a condition where excess Concentration of a value or attribute of a system is the cause of Risk. Concentration risk is usually monitored by risk functions, committees and boards within commercial banks and is normally only allowed to operate within ... Nov 30, 2023 ... Concentration Risk FAQs · Concentration risk refers to the potential for loss that arises from having a significant portion of assets or ... Apr 29, 2022 ... ... risk. Concentration risk—A concentration of funding sources, both secured and unsecured, can affect liquidity risk if the funding sources ... Apr 12, 2023 ... Relying too heavily on a single vendor to perform several, or all critical and/or high-risk functions can expose an organization to vendor concentration risk.