Managing Concentrations in a Post-Pandemic World


Concentration risk management within the banking industry is transitioning from being a passive exercise in which generic targets for large buckets of loans such as CRE and construction as a percentage of capital were plucked out of thin air to an active and data-driven one that will incorporate all critical portfolio segments such as NAICS codes. The end result for those banks are a best-in-class risk management framework blessed by regulators and in many cases, increased lending capacity by having the data, analytics, and conviction to support higher limits.

Adam Mustafa
Invictus Group