QUICK DEFINITION
Cloud Concentration Risk — Systemic dependency created when important workloads across institutions rely on a small number of cloud providers or regions.
WHY IT MATTERS
Why Cloud Concentration Risk matters in finance
Shared infrastructure can turn an isolated provider outage into a broad financial-sector resilience issue.
FINANCIAL SYSTEM CONTEXT
← Back to the Financial Security GlossarySecurity is also a market-infrastructure question
In financial services, cloud concentration risk should be understood in relation to operational continuity, data integrity, payments, market infrastructure and interconnected dependencies. A control can be technically effective while still leaving material resilience risk if critical services cannot continue or recover during disruption.