3rd party concentration risk – Below the tip of the iceberg – Part 1

3rd party concentration risk – Below the tip of the iceberg – Part 1

From Enterprise Risk Management, Third Party Risk Management and Financial Risk Management perspectives, concentration risk is the probability of loss due to lack of diversification.

Insightful and freely available white paper by Mick Kless, CEO, Compliance Education Institute.

In the context that we’re discussing in this article, it’s the lack of diversification of the 3rd party inventory or the geographic proximity of critical third party service providers.

Read the full white paper here.