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 ?

Idiosyncratic risk, or company specific risk, typically doesn't play a large role, as macro managers tend to be more concerned with systematic risk exposure; that is, broad thematic exposure.

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It isolates the cost of managing company specific risk sources and ties these costs to actual performance.

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Insufficient adjustment for company specific risk factors.

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Graduates of the VC/OPM Program will be able to register for over 15 additional valuation courses offered by The Venture Capital Valuation College, which are tailored to venture capital finance professionals and cover such topics as PWERMs, DLOMs, DCF models, Equity Risk Premiums, Company Specific Risk Premiums, Volatility Buildups, Comparable Companies and Transactions, and the market approach to valuation.

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Using exchange-traded unit trusts of index funds along with cash, we offer a superior portfolio strategy, eliminating company specific risk.

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Company specific risks include increased competition from other businesses and changes in the ability of businesses to grow by increasing their sales and profits.

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ERM thinking can help the accountant better understand the company specific risks.

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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.

Fitch Upgrades Ford & Ford Credit's IDRs to 'BB+'; Outlook Positive

com, cites "We believe that the current company specific risks outweigh by far the future potential value of the company.

Wasserman Morris & Co. Initiates Coverage and Issues Research Report for Cyber Defense Systems with a Price Target of $1.60

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.

Healthcare Business Services Rated 'Speculative/3', $0.27 Target Valuation By Investrend Research Analyst Gary Vassalotti