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 ?
INVESTMENT RISKS: The Fund is subject to the typical risks of equity investing, which include, but are not limited to: loss of money, company-specific risks, the effects of interest rate fluctuations, investor psychology, and negative market or other general economic news.
We also see high potential upside in MRSK North Caucasus, but note that it bears fairly significant company-specific risks.
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.
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.
Persons reading this news release are cautioned that factors that could cause actual events or results to differ materially from those suggested in these forward-looking statements include, but are not limited to, regulatory, design, engineering, intellectual property, technological and competitor risk and the other industry-specific and company-specific risks, uncertainties and factors identified in our various public filings at www.
ETFs allow you to participate in areas of the market while helping reduce the company-specific risks associated with buying individual stocks.
These Company-specific risks include dependence on the performance of Kaiser-Hill Company, LLC and the resolution of disputes relating to the steel mini-mill constructed in the Czech Republic for Nova Hut, a.