What is another term used for company unique risk?

The term "company unique risk" refers specifically to the risks that are associated with a particular company or industry, which can be mitigated or eliminated through diversification. This is often labeled as "diversifiable risk."

Diversifiable risk pertains to uncertainties that are unique to a specific company or sector, such as management decisions, product recalls, or regulatory changes. Investors can reduce exposure to this type of risk by holding a diversified portfolio of assets that do not all respond to the same events.

In contrast, systematic risk—also known as market risk—affects a large number of assets simultaneously, and this type of risk cannot be eliminated through diversification. Therefore, it is essential to differentiate between risks that can be diversified away and those that are inherent to the entire market.

The term "non-systemic risk" is not commonly used in finance and does not have a recognized definition in this context. Understanding the distinction between these terms is crucial for effective risk management and investment strategies.