In finance, a specific risk is a risk that affects a very small number of assets. This is sometimes referred to as "unsystematic risk".
An example would be news that is specific to either one stock or a small number of stocks, such as a sudden strike by the employees of a company you have shares in or a new governmental regulation affecting a particular group of companies.
Unlike systematic risk or market risk, specific risk can be diversified away.
Last updated: 10-18-2005 18:04:29