AI-Powered Insights to Manage Customer Concentration Risk
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Understand and mitigate revenue dependencies with Verus.ai’s advanced analytics and interactive HHI calculator.

- AI-driven analysis of customer revenue streams
- Interactive tools for risk assessment
- Actionable strategies for diversification
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Herfindahl-Hirschman Index Calculator

Steps to Calculate Market Concentration

Verus.ai helps private equity firms and business leaders quantify and mitigate customer concentration risk using advanced analytics, including our interactive Herfindahl-Hirschman Index (HHI) calculator.

What Is Customer Concentration Risk?

Customer concentration risk occurs when a large portion of your revenue comes from a small number of clients. This can create financial vulnerability if a key customer reduces business or churns. Understanding this risk is critical in due diligence, strategic planning, and valuation—especially in M&A and investment analysis.

How Verus.ai Analyzes Customer Concentration Risk

Our platform uses AI and proprietary scoring models to:Identify revenue dependencies across your customer base
-Visualize risk exposure by segment, region, or industry
-Flag accounts that pose high concentration risk
-Recommend diversification strategies
-Our tools integrate seamlessly into diligence workflows, making customer risk profiles fast, objective, and comparable across deals.

Herfindahl-Hirschman Index (HHI): A Proven Metric for Concentration

The Herfindahl-Hirschman Index (HHI) is a widely recognized measure of market or customer concentration. It is calculated by summing the squares of each customer's share of total revenue, generating a score from 0 to 10,000. Higher scores indicate greater concentration—and greater risk.Use HHI to:
-Assess customer concentration risk during diligence
-Benchmark against peers
-Model the impact of customer loss or diversification

Verus.ai - Customer Concentration Risk Analysis

Foundational Concentration Metrics - core risk metrics and visual diagnostics for customer concentration.

‍A. Core Metrics & Scores
‍Herfindahl-Hirschman Index (HHI) – Standard metric for concentration
Top 1 / 5 / 10 Customer % of Revenue – Reveals revenue dependency
Concentration Ratio (CR-n) – Market share of largest customers
Gini Coefficient – Measures inequality of revenue distribution

‍B. Segmentation & Summaries
‍A/B/C Customer Segmentation – Based on cumulative revenue contribution
Customer Count & Total Revenue Metrics – Top-level KPIs for reporting
Data Filtering by Date Range – Isolate relevant time periods

‍C. Visualizations
‍Pareto Chart – Cumulative revenue distribution
Top Customer Bar Charts – Percentage share visual
Revenue Distribution Pie Chart – Top N + Others
Risk Radar Chart – Composite risk factor profile
HHI Gauge – Visual representation of HHI score
Concentration Over Time (Month/Quarter/Year)

‍D. Dimension-Based Analysis
‍Concentration by Region / Channel / Sales Rep – With HHI per segment
Dimension Risk Ranking & Charts

Try Our Free Herfindahl-Hirschman Index Calculator

Use our interactive HHI calculator below to assess concentration in your customer base:
‍[HHI Calculator Link]
‍Enter your customer revenue breakdown and instantly receive:
-Your HHI score:
-Risk category (Low, Moderate, High)
-Strategic insights based on your results