Company-specific risk

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Company-specific risk

Company-Specific Risk

An unsystemic risk specific to a certain company's operations and reputation. For example, if a widget wholesaler has only one supplier and the supplier goes bankrupt, this could greatly impact the wholesaler's sales, profits, and other operations. Also, a company may have a bad reputation, making their operations difficult in a certain area. For example, a company that refuses to hire union workers might prove unprofitable if it opens a branch in a strongly pro-union town. Company-specific risks are difficult to quantify and thus qualitative analysis is needed to determine their natures and likelihoods. They may be reduced by appropriate diversification.
References in periodicals archive ?
The Textile Guide is not limited to searches for chemicals though; it holds many features for a solid chemical management and can help companies prioritize which chemicals and company specific risks they should act on.
Company specific risks include increased competition from other businesses and changes in the ability of businesses to grow by increasing their sales and profits.
ERM thinking can help the accountant better understand the company specific risks.
Although Ford's credit profile is considerably stronger than it was prior to the recession, the company continues to face numerous industry and company specific risks.
com, cites "We believe that the current company specific risks outweigh by far the future potential value of the company.
Given the fragmented condition of the billing services industry, the potential for the surgical centers, and the company specific risks noted in a prior section, HBSGI is rated Speculative / 3.