Third-party concentration risk

Third-party concentration risk is the exposure created when many critical services depend on the same external provider, such as a single cloud region, SaaS platform or managed-service firm. One failure there disrupts many functions at once.

Why it matters at a CIO Cafe table

Terms like Third-party concentration risk turn up at tables because the disagreement is usually about scope, not definition. Agreeing what the word means is the cheapest way to shorten a decision — which is why every table starts by framing the question in plain language.