Concentration risk threatens organizational stability when a single point of dependence fails or underperforms, causing disproportionate impact. This manifests in credit portfolios with large exposures to one borrower, supply chains dependent on sole suppliers, or revenue concentrated in few customers. When Apple diversified manufacturing beyond China to Vietnam and India, it reduced geographic concentration risk from geopolitical tensions and pandemic disruptions. Managing concentration requires identifying dependencies through exposure analysis, setting concentration limits, developing alternatives, and ensuring diversification aligns with strategic objectives while balancing efficiency considerations.