Definition
Concentration risk is the danger of depending too heavily on a single vendor, platform, or region, so one failure or price hike has outsized impact.
The more critical processes you consolidate onto one provider, the more leverage they hold at renewal and the bigger a single outage hurts. Weigh the efficiency of consolidation against the exit cost and resilience you give up.
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Benchside turns concentration risk into the exact questions, exclusions, and lock-in math for your specific vendor - your first project is free.