Portfolio Concentration Review

Understand where risk is clustering in your book

Concentration risk is one of the most dangerous exposures in lending—a single sector downturn or obligor default can cascade through an entire book.

Weekly schedule: Every Monday at 6:00 AM, before the risk committee meets
Month-end cycle: First business day of each month for regulatory reporting alignment
Total portfolio exposure by drawn amount, committed amount, and expected loss
Sector concentration table showing exposure by NAICS/SIC code with policy limit utilization

Portfolio Concentration Review

Weekly analysis • 3 limits approaching threshold

B+
Real Estate
23%limit 25%
Top 10 Obligors
31%limit 35%
Single Name Max
4.8%limit 5%
Geographic (NE)
28%limit 30%
Approaching Limits
CRE - Office94% of limit
Acme Industries96% of limit
Energy Sector89% of limit
Rebalancing Opportunities
Reduce CRE officeDiversify energyReview Acme limit

Built for risk leaders
who demand complete visibility

Concentration risk is one of the most dangerous exposures in lending—a single sector downturn or obligor default can cascade through an entire book.

Chief Risk Officers

Portfolio-wide oversight

Risk Managers

Risk assessment & mitigation

Relationship Managers

Actionable client conversations

Collections Teams

Better timing & prioritization

From alert to action in minutes

The objective of this agent is to reduce concentration risk and maintain policy compliance.

Step 1

The Trigger

You define when the agent should activate. When conditions are met, it starts working automatically.

  • Weekly schedule: Every Monday at 6:00 AM, before the risk committee meets
  • Month-end cycle: First business day of each month for regulatory reporting alignment
  • Post-booking trigger: After large transactions close that materially change exposure
Step 2

360° View

The agent opens a tailored dashboard consolidating data from all your systems.

  • Total portfolio exposure by drawn amount, committed amount, and expected loss
  • Sector concentration table showing exposure by NAICS/SIC code with policy limit utilization
  • Geographic heatmap displaying exposure by country, region, or economic zone
Step 3

Automated Analysis

The agent follows a structured analysis flow, combining checks with exploratory reasoning.

  • Policy limit scan: Checks each sector, geography, and rating band against defined limits, flagging any above 80% utilization with distance-to-breach calculations.
  • Single-name review: Identifies obligors approaching or exceeding individual exposure limits, calculating the specific amount of reduction needed.
  • Correlation analysis: Examines whether concentrated sectors share common risk factors (e.g., oil price sensitivity, interest rate exposure) that compound concentration risk.
Step 4

Actionable Output

After analysis, the agent creates a human-friendly report with everything your team needs.

  • Executive summary: One-paragraph overview of portfolio concentration health with material changes since last review
  • Limit breach alerts: Any segments at or above policy limits requiring immediate action
  • Watch list: Segments between 80-100% of limits with projected time to breach
Step 5

Delivery

Reports are sent automatically via email or accessed directly in Veezoo.

Key benefits for risk teams

Concrete, measurable value for your team from day one

Fast Action

Faster concentration visibility

Before: 2-3 days to compile exposure data across systems manually. Now: complete portfolio view refreshed weekly in minutes.

Early Warning

Earlier limit breach detection

Identify segments approaching thresholds weeks before breaches occur, allowing proactive management rather than reactive remediation.

Deep Analysis

Consistent monitoring cadence

Automated weekly runs ensure concentration is reviewed every period, regardless of team workload or competing priorities.

Up and runningin production in weeks

To deploy this Agent, you connect Veezoo to your existing Data Warehouse, typically containing data from:

Loan Origination System (LOS): Facility details, drawn and committed amounts, obligor information, booking dates
Limit Management Platform: Policy limits by sector, geography, rating band, and single-name; current utilization
Credit Risk System: Obligor ratings, PD/LGD estimates, expected loss calculations
General Ledger / ERP: Product and business line mappings for exposure categorization
Sector
Geography
Rating
Limit
Portfolio
Exposure

Ready to explore Portfolio Concentration Review?

Fully customizable to your workflows, data sources, and business requirements.

Typical initial implementation in weeks, not months.