What does the concentration risk score measure?

It multiplies three 1 to 10 judgments: the impact of losing the customer, the chance of a disruption, and how hard they are to replace. Use it to rank customers, not to predict a loss.

How should I pick the threshold score?

Pick the score at which you would act, such as starting a diversification push. Review it yearly, because a growing customer changes the score and its revenue weight.

Why show a revenue-weighted score as well?

A 9 on a customer worth 3% of sales and a 9 on one worth 50% need different responses. Weighting scales the score by the sales at stake so the two rank apart.

What is the highest factor share?

It shows the largest of the three scores as its share of the 30 point maximum. A 9 impact prints 30%, flagging impact as the factor to examine first.

Contract Manufacturing, Job Shop Quoting & Make-to-Order calculator

Customer Concentration Risk Calculator

Score the risk of losing one customer, using 1 to 10 ratings for impact, disruption likelihood and replacement difficulty. The revenue share turns that score into the sales value at stake.

What this calculator does

Score the risk of losing your largest customer, weighted by its revenue share, against a threshold you set.

Formula used

Risk score = impact score × disruption likelihood score × replacement difficulty score
Risk index = risk score ÷ 10
Revenue-weighted risk score = risk score × revenue share ÷ 100
Highest factor share = MAX(impact, likelihood, replacement difficulty) ÷ 30 × 100
Points over threshold = MAX(risk score − threshold, 0)

Inputs explained

Customer Impact Score: How hard losing this customer would hit revenue.
Disruption Likelihood Score: How likely this customer is to cut or leave.
Replacement Difficulty Score: How hard the lost revenue is to replace.
Revenue Share: Share of total sales this customer represents.
Risk Threshold Score: Score at which you would act on the risk.

How to use the result

Best suited to annual review of customer concentration, setting diversification targets for the year, pricing work for a dominant customer.
A high factor can hide behind two low ones, so read the highest factor share too. One customer only: related customers under one parent are not grouped.

Current U.S. benchmarks

The U.S. prime lending rate is 7.00% (Federal Reserve via FRED, 2026-10-02). Payback and financing math should start from today's rate, not a remembered one.

Common questions

What does the concentration risk score measure? It multiplies three 1 to 10 judgments: the impact of losing the customer, the chance of a disruption, and how hard they are to replace. Use it to rank customers, not to predict a loss.
How should I pick the threshold score? Pick the score at which you would act, such as starting a diversification push. Review it yearly, because a growing customer changes the score and its revenue weight.
Why show a revenue-weighted score as well? A 9 on a customer worth 3% of sales and a 9 on one worth 50% need different responses. Weighting scales the score by the sales at stake so the two rank apart.
What is the highest factor share? It shows the largest of the three scores as its share of the 30 point maximum. A 9 impact prints 30%, flagging impact as the factor to examine first.

Last reviewed 2026-10-01.