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By Samikendra Ghosh, Global Third Party Risk Lead, HSBC
How can organizations better define and understand concentration risk?
Regulators expect firms to be aware of the business resilience impact from its material 3rd party landscape as a key cornerstone to strategy and business decisions.
One of the enabling factors for this is evaluating the concentration that builds up owing to consolidation strategy; geopolitical shifts; supply chain dependencies etc. Key attributes such as these exist in every organisation, however what remains to be done is understanding and weighing in which attributes helps shape the concentration pivot and what questions are being presented to decision makers at the right junctures.