Riskipitoisuus

Riskipitoisuus (Finnish for risk concentration) is a concept used in risk management to describe how exposure to risk is distributed across components of a system, portfolio, or process. A high riskipitoisuus indicates that a large portion of total risk stems from a small number of sources, while a low riskipitoisuus suggests a more diversified or evenly spread risk profile.

Measurement and indicators often rely on the shares of total risk contributed by each component. This can be expressed as RC_i, the risk contribution of component i, and summarized with metrics such as the maximum risk share, the sum of squared risk shares, or concentration indices analogous to the Herfindahl index. In finance, riskipitoisuus translates into concentration risk, such as exposure to a single issuer, sector, or geographic region. In industrial safety and environmental risk assessment, it helps identify whether a single hazard or failure mode dominates overall risk.

Applications include portfolio construction, where regulators and institutions aim to limit concentration to reduce the potential impact of extreme events. In operations and project management, identifying riskipitoisuus guides the allocation of resources to controls, diversification, redundancy, and risk transfer measures.

Limitations include the dynamic nature of risk sources and the dependence between components, which can affect concentration calculations. Proper management of riskipitoisuus requires regular monitoring, scenario analysis, and alignment with an organization’s risk appetite and governance framework.