company risk

Company Risk

Risk that might cause a loss to one company but not to other, similar companies. An example of company risk is the possibility of a strike by a company's employees. One may mitigate company risk by buying securities of multiple companies in the same industry. For example, a particular oil company has the company risk that it may drill little or no oil in a given year. An investor may mitigate this risk by investing in several different oil companies. Company risk is a type of nonsystematic risk.

company risk

The risk that certain factors affecting a specific company may cause its stock to change in price in a different way from stocks as a whole. For example, the profits and stock price of a firm selling an unusually large portion of its output to foreign customers are subject to certain factors, such as changes in foreign exchange rates, that are less important to other companies.
References in periodicals archive ?
13 January 2015 - US-based risk management consulting company Risk International has acquried independent property and casualty insurance actuarial service Bartlett Actuarial, the company said on Tuesday.
Recently acknowledged as #1 time recording software provider in the UK by Legal Technology Insider, Intapp is also reputed for its best-of-breed software in law company risk management including new business intake, conflicts management and information security as well as data integration.
Some look to their CEO or CFO, but the people who really can provide the knowledge and insight they need are their own company risk managers or chief risk officers.
But insurance company Risk Management Partners challenged the consortium, saying the arrangement broke an EU procurement directive.
If a pharmaceutical company risk manager is well versed in the risks involved in tablet production, having worked at such a plant, but has not done a stint in biopharma and so cannot speak first-hand to risks associated with injectibles and biologicals, she should know to seek out subject-matter specialists in those areas.
Catastrophe risk management company Risk Management Solutions recently released version 6.0 of its U.S.
CipherTrust RADAR reportedly provides fraud investigators with company-specific information using several approaches - company risk assessment, which identifies instances of a company's name being used in fraudulent messages; internal threat monitoring, which allows companies to monitor internal IP addresses and domains; real-time alerts; and investigative assistance, which assists fraud investigators in identifying the source of phishing schemes.
Over one quarter of all privately held companies were sued by current or former employees in recent years, according to the Chubb 2004 Private Company Risk Survey.
It thoroughly covers the fundamentals of the BV practice area, including the standards, research and its presentation, the financial statements and company risk analysis, the income approach, the cost of capital, the market approach, the asset approach, valuation discounts and premiums and report writing.
As Wallison suggests, "Given this background, it would not be surprising if independent directors--as a majority now specially constituted by law and regulation--interpreted their mandate as authority to take a more active voice in the assessment of company risk than had been true in the past." No question about it!
If not addressed during the planning stages, however, not only does the company risk increasing its indirect tax liability (which directly affects the bottom line), but it might be exposed to potentially hefty customs penalties if the dutiable royalty stream is unreported to the U.S.
DIVERSIFY AWAY COMPANY RISK: When investing in stocks it is always a good idea to diversify your holdings.