Concentration risk (internet infrastructure)
termcloudgovernance & risk
The exposure created when a large share of unrelated organisations depend on the same provider, region, network or authority - so that a single failure, decision or legal order reaches all of them at once.
It is emergent rather than designed: each organisation picked the most reliable option available and the aggregate became a shared failure domain. Two things follow that are easy to miss. Individual reliability and systemic fragility can rise together, because the better a provider is, the more of the world routes through it. And concentration is jurisdictional as well as technical - a small number of companies means a small number of legal levers. Regulators now target it explicitly, which is unusual for a property nobody deliberately created.
Also known as: risco de concentracao, systemic dependency, single-provider exposure