A type of market risk (MR) that arises from narrowly-defined, or specific factors other than broad market dynamics/ movements. Specific market risk includes event risk, default risk, and idiosyncratic variations relating to specific sectors or firms. This risk may also be defined as defined as the risk of financial loss/ unfavorable outcomes resulting from an adverse price movement of a security/ unit due largely to factors related to a firm or market player (e.g., a bank, a debt issuer, etc.)
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