Unsystematic risk is also called

Unsystematic risk refers to risk that is specific to a company or industry. It is different from systematic risk which affects the whole market. Examples include poor management strikes or product failures. Unsystematic risk can be reduced through diversification by investing in different industries or companies. For example if an investor holds shares in both a pharmaceutical company and a technology company loss in one may not affect the other. This is why diversification is a key strategy to minimize unsystematic risk.