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 ?
We also see high potential upside in MRSK North Caucasus, but note that it bears fairly significant company-specific risks.
They can thus gain extra protection against company-specific risks, such as employee liability, by purchasing this already-insured risk via the reinsurance market.
The principles-based approach quantifies company-specific risks with respect to individual products, eliminating the need to hold redundant reserves.
While company-specific risks will likely cause volatility, we believe that valuation is compelling relative to its growth prospects," the analyst wrote.
Among the company-specific risks are a still-high, but increasingly manageable, debt load, as well as material pension and OPEB obligations.
In addition we amended our WACC estimates to account for elevated company-specific risks.
We raised our WACC estimates to reflect company-specific risks associated with its relatively high debt burden and the value of investments held for sale.
In addition we have amended our WACC estimates to account for company-specific risks.
Today, the framework is based on the determination of company-specific risks.
Active traders also continue to embrace the use of exchange traded funds (ETFs), which can be an easy, cost-effective way to gain exposure to sector, industry or market trends while helping reduce the company-specific risks associated with buying individual stocks.
ETFs allow you to participate in areas of the market while helping reduce the company-specific risks associated with buying individual stocks.
The risks and uncertainties include, but are not limited to, macroeconomic events affecting interest rates, the availability of credit and real estate values, as well as company-specific risks including the availability of financing on favorable terms, revenue levels, and net losses currently and expected to continue unless projected revenues materialize.