Business and Personal Finance Dictionary

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• CONCENTRATION RISK
  
  According to "Risk Concentrations Principles," which the BIS released in 12/99, risk concentrations in financial conglomerates come in seven categories of exposures, to: individual counterparties, groups of individual counterparties, counterparties in specified geographical locations, counterparties in industries, counterparties in products, key business services (such as back-office services), and natural disasters. (BIS Examines Concentration Risk, 2/2000, p. 11.)
  
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