Definition
Company-specific risk is the investment risk unique to a particular company, separate from market risk. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
A mentor asks, “What is your Company-specific risk?” The useful answer is concrete: investment risk unique to a particular company, separate from market risk. A slide title is not an answer.
Common mistake
Using Company-specific risk as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Company
Legal entity formed to conduct business operations and generate profits.
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Company culture
Shared values, beliefs, and practices that define how a company operates.
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Comparable company analysis
Valuation method comparing a company to similar companies in the same industry.
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Comparable store sales
Retail metric comparing sales from stores open for the same period.
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