Client Concentration
A risk metric measuring how much revenue depends on a small number of clients, typically expressed as the percentage of revenue from the top 1–3 accounts.
Example
An agency realizes 60% of their revenue comes from two clients. When one client cuts their budget, the agency loses 35% of monthly income overnight. They implement a policy to cap any single client at 20% of revenue and actively pursue new business to diversify.
Related article:
Customer Concentration Risk: Guide to Assessment & Mitigation
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