Koncentrationsiriski
Koncentrationsriski is a Swedish term that translates to "concentration risk." It refers to the potential for financial or economic losses that arise from a disproportionate exposure to a single entity, industry, geographic region, or asset class. This means that if a particular investment, business operation, or economic activity experiences a downturn, the impact on the entity facing the concentration risk will be significantly amplified due to its heavy reliance on that specific area.
For example, a company that generates almost all of its revenue from a single product or from
In a broader economic context, a country that relies heavily on the export of a single commodity,
Managing concentration risk involves diversification. By spreading investments, revenue streams, or business operations across a wider