Definition
Concentration risk is the investment risk from having too much exposure to a single asset or market. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
You know Concentration risk is doing work when it changes a weekly choice — price, hire, channel, or kill. The working definition: Investment risk from having too much exposure to a single asset or market.
Common mistake
Using Concentration risk as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Competitor analysis
Detailed study of competitors' business models, strategies, and performance.
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Compliance
Adherence to laws, regulations, and industry standards in business operations.
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Concept testing
Market research method to evaluate consumer response to new product ideas.
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Conditional sales contract
Agreement where ownership transfers only after certain conditions are met.
Read definition →
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