# Unsystematic Risk

*Risk & Portfolio — Finicade finance glossary*

The risk specific to one company or sector — a scandal, a failed product, a factory fire. Because it's independent across firms, diversification can wash it out, so the market offers no extra reward for carrying it.

**Also known as:** idiosyncratic risk, specific risk

**Related terms:** [Systematic Risk](https://finicade.com/glossary/systematic-risk), [Diversification](https://finicade.com/glossary/diversification), [Beta](https://finicade.com/glossary/beta)

Source: https://finicade.com/glossary/unsystematic-risk