Concentrating risk at one stage of the supply chain increases overall supply chain profits if the supply chain margin is divided between the two parties and each makes its decisions concerning only its own margin.

Concentrating risk at one stage of the supply chain does not necessarily increase overall supply chain profits. It can lead to inefficiencies and increased vulnerability to disruptions, which can negatively impact profits for both parties involved. Effective risk management and collaboration across the supply chain are essential for maximizing overall profits.