Framework

ICT Concentration Risk

The risk associated with the over-reliance on a single or limited number of ICT service providers, potentially leading to system vulnerabilities and disruptions.

ICT Concentration Risk highlights the dangers of having too few providers for critical IT services, which can lead to a single point of failure.

This risk is particularly relevant in sectors where digitalization is high, and the reliance on a few key players can compromise the stability and security of the entire ecosystem.

Mitigating ICT Concentration Risk often involves diversifying service providers, implementing redundancy measures, and regularly reviewing the resilience of the ICT infrastructure.

Related Terms

ICT Risk Management

The process of identifying, assessing, and mitigating risks associated with information and communication technology systems. Under DORA, financial entities must maintain a comprehensive ICT risk management framework covering identification, protection, detection, response, and recovery.

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