Credit concentration risk

Roles that need it

• Credit Risk Analyst
• Corporate Credit Analyst
• Risk Advisory Consultant
• Regulatory Consultant (Banking)

Skills it belongs to

• Credit analysis and creditworthiness
• Basel framework and capital
• Scenario and sensitivity analysis

Related concepts

• Credit limitA credit limit is the maximum exposure a lender is willing to have to a borrower, a group of connected clients, a sector or a country. Limits are approved by delegated authority, monitored daily or monthly, and breaches are escalated.
• Large exposuresThe large exposures regime limits a bank's exposure to a single client or group of connected clients to 25% of its Tier 1 capital, with tighter limits between systemic banks. Exposures of 10% or more of Tier 1 must be reported. It protects banks against the failure of one counterparty.
• Risk appetite (risk appetite framework)Risk appetite is the level and types of risk a firm is willing to take to meet its strategy, approved by the board. The risk appetite framework turns it into a statement, limits and indicators that are monitored and escalated when breached.

Sources

• Principles for the management of credit risk, BIS (external site) accessed 31 Oct 2026
• Regulation (EU) No 575/2013 (Capital Requirements Regulation), EUR-Lex (external site) accessed 31 Oct 2026

Updated 31 Oct 2026.