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.