I am unsure what conclusions to draw regarding the stress concentration in the attached picture.

The picture shows a sectioned view of Von-Mises. The peak stress at the surface region indicated is around 415 Mpa, so about 60Mpa above the yield strength. As can be seen, the stress decreases very rapidly through the thickness of the material, reaching acceptable levels a mere millimeter or so beyond the surface.

The part in question is 12.5mm thick S355.

Considering the material thickness and the acceptable stress just beyond the surface, is this stress really a concern?

How should I conclude the results in this region?

Much appreciated,

Peter