Concentration risk
The condition where too much of a portfolio's expected value depends on a single initiative, one of the performance triggers that can warrant rebalancing. Distinct from concentration as a funding discipline: concentration of funding is desirable, concentration of dependence on one bet is a fragility to watch.
Defined in 2 GAGE programs, which carry 3 distinct definitions of it. The wording above is taught in Certified AI Transformation Professional (CATP).
How each discipline defines it
The same term does different work depending on who is using it. These are the definitions as each program teaches them, unedited.
The condition where too much of a portfolio's expected value depends on a single initiative, one of the performance triggers that can warrant rebalancing. Distinct from concentration as a funding discipline: concentration of funding is desirable, concentration of dependence on one bet is a fragility to watch.
the exposure created by depending on too few independent sources for a
The danger that many initiatives quietly depend on one shared thing (a data pipeline, a vendor, a single person), so that one failure takes down many at once. Visible only from the portfolio altitude, and reduced by hardening or diversifying the most load-bearing dependencies.
Where it is taught
The exact lessons this term appears in. The first 7 topics of every program are free with a free account.
- Program Management and Execution Discipline · Implementation from Pilot to Scale, Certified AI Transformation Professional (CATP)
- Portfolio Prioritization and Resource Allocation · Strategic Roadmapping, Certified AI Transformation Professional (CATP)
Terms it appears with
Not an alphabetical neighbourhood: these are the terms taught in the same lessons, ranked by how often they appear together.