##  [Counterparty Concentration Risk](/index.php/counterparty-concentration-risk) 

  ##  [Counterparty Concentration Risk](https://social.quantumdictionary.io/counterparty-concentration-risk-0) 

  

 [![Social Sciences Dictionary](/sites/default/files/styles/large/public/2026-01/Social%20Sciences.png.webp?itok=FFG6NW1n)](/index.php/topic-specific-dictionaries/social-sciences)



**Social Sciences Dictionary**

 







 

 

 

 



 

 

 

 

Definition

The heightened risk that arises when credit or market exposures are disproportionately concentrated with a small number of counterparties or closely affiliated entities, increasing vulnerability to idiosyncratic default or correlated stress among those counterparties.