Customer concentration risk is the vulnerability created when a large share of revenue depends on a small number of customers or a single contract. Boards should care because concentration quietly inflates valuation and resilience until the day a key account is lost, repriced or delayed, at which point earnings and covenant headroom can collapse together. This report explains how concentration is measured and stress-tested in your chosen jurisdiction and industry, the indicators that a critical relationship is weakening, the scenarios that turn dependency into distress, the realistic impact ranges, and the commercial and contractual mitigations that reduce fragility. It also sets out when to involve commercial, financial and legal specialists, framed as research to inform diversification and contracting decisions rather than as advice on any specific account.
Reference material for informed readers, not advice.
