At a glance
The risk that multiple exposures share common drivers, making a portfolio sensitive to the same region, commodity or event.
Why it matters
Diversification by borrower name may still leave a portfolio exposed to one climate or production shock.
An operating example
Examine how many agricultural borrowers depend on the same crop and water-constrained region.
Illustrative application, not a live customer result or a guarantee of product availability.
What it does and does not tell you
Physical-world indicators complement financial analysis; they do not set concentration limits or lending policy.