specific risk en · NOUN
Meanings
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(countable, uncountable) A risk inherent in a small group of assets that can be mitigated by diversifying, investing in a broad portfolio of assets.
By investing in individual companies, you're exposing yourself to specific risk, or unique business challenges faced by companies. Specific risk is very different than systematic risk, or risk faced by all stocks.
2010, Matt Krantz, chapter 18, in Fundamental Analysis for Dummies, Wiley Publishing:Therefore, the value is actually exposed to changes in two different risk factors, i.e., systemic risk and specific risk.
2000, Financial Risk Management: A Practical Approach for Emerging Markets, Inter-American Development Bank, page 64:The fourth type of risk is called specific risk. As the name implies, specific risk is associated with the risk of a specific investment or a specific investment manager. Specific risk is one of the most dangerous types of risk, but fortunately it's also one of the easiest to eliminate.
2004, Andrew Springett, The Pension Strategy: The Ultimate Guide to Personal Investing, Insomniac Press, page 43:
Forms
| Spelling | Features | Labels | Source |
|---|---|---|---|
| specific risks | Number=Plur | lexicographic |
Antonyms
non-diversifiable risk · systematic risk