concentration risk definition
concentration risk means all risk exposures with a loss potential which is large enough to threaten the solvency or the financial position of insurance and reinsurance undertakings;
concentration risk or ‘CON’ means the exposures in the trading book of an investment firm to a client or a group of connected clients the value of which exceeds the limits in Article 37(1);
concentration risk means the risk of exposure to losses associated with inadequate diversification of portfolios of assets or obligations;
More Definitions of concentration risk
concentration risk. - means the risk of a possible loss due to direct or indirect overexposure to a single person or group of related persons or unrelated counterparties in a specific economic or industry sector.
concentration risk. While investment in mutual funds and ETFs generally provide diversification, concentration risk can be significantly increased if the fund invests in a particular sector of the market, or concentrates in a particular type of security (i.e equities) rather than balancing the fund with different types of securities. The best way to minimise this risk is by diversifying your portfolio.
concentration risk means the risk arising from an exposure to individual or multiple providers of outsourced services which creates a degree of dependency on such providers so that the unavailability, failure or other shortcoming in the service of such provider may adversely affect the SIPS and/or the SIPS operator, including by jeopardising its ability to operate and provide its services, and/or jeopardise the financial stability of the Union as a whole.
concentration risk means the risk arising from the concentration of a bank’s transactions with a person, a group of closely linked entities, a sovereign, or counterparties from a particular geographical area or economic sector, or the risk arising from credit risk mitigation techniques;
concentration risk means the risk arising from each individual, direct or indirect, exposure to a single person, a group of connected clients, a central counterparty or a group of exposures linked by common risk factors such as the same economic sector, the same geographic region, business activities or commodity, and the use of credit risk mitigation techniques, including in particular risks associated with large indirect credit exposures to a single collateral provider which may lead to losses that could jeopardise further operation of the credit institution or a materially significant change in its risk profile. 'Intra-risk concentration' refers to risk concentrations that may arise from interactions between different risk exposures within a single risk category. 'Inter-risk concentration' refers to risk concentrations that may arise from interactions between different risk exposures across different risk categories. The interactions between different risk exposures may stem from a common underlying risk driver or from interacting risk drivers;
concentration risk or “CON” means the exposures in the trading book of an investment firm to a client or a group of connected clients the value of which exceeds the limits in Article 37(1) of IFR. The exposures are calculated by adding together the following items:
concentration risk means all risk exposures with a loss potential which is large enough to threaten the solvency or the financial position of insurance and reinsurance undertakings;‘capital redemption branch’ means the branch regarding the conclusion and performance of contracts of insurance that are based on actuarial calculations on the basis of which obligations are undertaken for a certain period of time and for a certain amount, against a lump sum or periodic predetermined payments;‘member state’ means a member state of the European Union or other state that is a contracting party to the Agreement on the European Economic Area, which was signed in Oporto on the 2nd May 1992 and was adjusted by the Protocol signed in Brussels on 17 May 1993, as this Agreement may be amended at any given time;‘Member State of the commitment’ means the Member State in which either of the following is situated:(a) the habitual residence of the policy holder;(b) if the policy holder is a legal person, that policy holder’s establishment, to which the contract relates;‘home member state’ means any of the following:(a) for Non-Life insurance, the member state in which the head office of the insurance undertaking covering the risk is situated;(b) for Life insurance, the member state in which the head office of the insurance undertaking covering the commitment is situated;(c) For reinsurance, the member state in which the head office of the reinsurance undertaking is situated;‘member state in which the risk is situated’ means:(a) the member state in which the assets are situated, where the insurance relates either to immovable property or immovable properties and their content, in so far as the contents are covered by the same insurance policy; or(b) the member state of registration, where the insurance relates to every type of means of transportation; or(c) the member state where the policy holder concluded the contract of insurance, in the case of policies of a duration less than or equal to four months, covering travel or holiday risks, whatever class concerned; or(a) in all cases not expressly referred to in paragraphs (a), (b) or (c), the member state in which either of the following is situated:(i) the habitual residence of the policy holder; or(ii) if the policy holder is a legal person, that policy holder’s establishment to which the contract relates;‘member state providing services’ for Life insurance and Non-Life insurance means the member state of the commitment or the member state in ...