specific risk

Noun

specific risk (countable and uncountable, plural specific risks)

1. A risk inherent in a small group of assets that can be mitigated by diversifying, investing in a broad portfolio of assets.
   • Therefore, the value is actually exposed to changes in two different risk factors, i.e., systemic risk and specific risk.2000, Financial Risk Management: A Practical Approach for Emerging Markets, Inter-American Development Bank, page 64
   • The fourth type of risk is called specific risk. As the name implies, specific risk is associated with the risk of a specific investment or a specific investment manager. Specific risk is one of the most dangerous types of risk, but fortunately it's also one of the easiest to eliminate.2004, Andrew Springett, The Pension Strategy: The Ultimate Guide to Personal Investing, Insomniac Press, page 43

   Synonyms:

   diversifiable risk, unsystematic risk