Common use of Concentration Risk Clause in Contracts

Concentration Risk. A loss occurrence risk due to the substantial exposure to persons or organisations subject to similar risks. The concentration risk involves the absence of sufficient diversification that exposes the Client to additional risks. The concentration risk can have various forms, including substantial exposure levels to individual financial instruments and/or issuers in the Individual Portfolio, groups of financial instruments and/or issuers, financial instruments and/or issuers of a certain economic sector or geographic region, individual products and service providers.