June 3, 2026
What is Risk Contribution?
The Answer
Risk Contribution is a portfolio-level metric that measures how much forensic stress an individual holding adds to your total capital risk. It is calculated by combining a company's specific Risk Score with its position weight. This reveals which stocks are 'Pulling' your entire portfolio into a danger zone.
Sector Focus
Why it Matters
Position sizing is the ultimate risk management tool. A small, high-risk holding might add more total risk than a massive, low-risk position. Risk Contribution exposes the 'Hidden Fragility' of your portfolio, identifying which names are disproportionately threatening your wealth.
Sentinel Insight
“Your biggest risk is often not your biggest position, but your most fragile one. Professionals use Risk Contribution to ensure their 'Stress Budget' is spent on their highest-conviction ideas.”
📊 How to Interpret
In Risk Context
Audit Scenario: • Stock A (Weight 5%, Risk 95) -> Contribution: 4.75 • Stock B (Weight 50%, Risk 10) -> Contribution: 5.0 Insight: Even though Stock A is only 5% of your money, it represents nearly 50% of your total structural risk. In professional risk management, these contributors are targeted first for de-risking.
Detect risk early
Flagium tracks these signals across multiple quarters to help you avoid structurally weak companies before it reflects in price.
Audit your risk contributors →🔍