RedHub AI
How the gate works
How the Customer Concentration Risk gate works
This tool grades how dangerously concentrated a revenue book is. It scores 2 weighted controls into a 0–100 number — then a gate that can only make the verdict worse.
The 2 weighted controls
In survival mode, if losing your #1 customer would drop revenue below your annual break-even, the verdict is forced to DANGER no matter how the concentration score reads. Concentration is only as dangerous as your ability to absorb the loss, regardless of the score.
Why: The revenue mix scores 51 — CONCENTRATED, not yet DANGER on the numbers alone. But with a $78K/mo cost base, losing the anchor client (28% of revenue) leaves $720K, below the $936K annual break-even. The survival gate forces DANGER: concentration is only as dangerous as your ability to absorb the loss.
A high score didn’t save it. The score is context; the gate is the answer — and it names the one thing to fix first. Your numbers only, computed offline. Grades a revenue mix, not a person. Not financial advice.