Idiosyncratic risk: Difference between revisions
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imported>Doug Williamson m (Category added) |
imported>Doug Williamson (Expand for bank regulation context. Source: MCT bank regulation study material.) |
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In the Capital Asset Pricing Model, the same as Diversifiable risk. | #In the Capital Asset Pricing Model, the same as Diversifiable risk. Also known as Specific risk or Unsystematic risk. | ||
#The concept is also important in bank regulation and stress testing. Regulated banks must be resilient both to shocks which are market-wide, and to shocks which are idiosyncratic or specific to the regulated entity. | |||
Also known as Specific risk or Unsystematic risk. | |||
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== See also == | == See also == | ||
* [[Diversifiable risk]] | * [[Diversifiable risk]] | ||
* [[Stress test]] | |||
[[Category:Financial_risk_management]] | [[Category:Financial_risk_management]] | ||
Revision as of 12:25, 1 September 2015
- In the Capital Asset Pricing Model, the same as Diversifiable risk. Also known as Specific risk or Unsystematic risk.
- The concept is also important in bank regulation and stress testing. Regulated banks must be resilient both to shocks which are market-wide, and to shocks which are idiosyncratic or specific to the regulated entity.
