Company-specific risk

Company-specific risk (or unsystematic risk) is specific to an individual company. For example, the stock market or the share prices of comparable companies may rise yet certain company-specific news can have a negative influence on the share price.

This company-specific news can include negative events such as strikes, management crises and poor annual results as well as positive news such as the winning of a major order, innovative products and a favourable market outlook. Extraordinary events within a company may affect the fluctuation in the share price (volatility) and cannot be foreseen.

See alsoGeneral risk