Standalone Risk

A A A

DEFINITION

The risk associated with a single operating unit of a company or asset. Standalone involves the risks created by a specific division or project, which would not exist if operations in that area were to cease.

INVESTOPEDIA EXPLAINS

Standalone risk measures the dangers associated with a single facet of a company's operations or by holding a specific asset. In portfolio management, standalone risk measures the undiversified risk of an individual asset. For a company, standalone risk allows them to determine a project's risk as if it were operating as an independent entity.


RELATED TERMS
  1. Unsystematic Risk

    Company or industry specific risk that is inherent in each investment. The amount ...
  2. Systematic Risk

    The risk inherent to the entire market or entire market segment. Also known ...
  3. Liquidity Risk

    The risk stemming from the lack of marketability of an investment that cannot ...
  4. Political Risk

    The risk that an investment's returns could suffer as a result of political ...
  5. Risk

    The chance that an investment's actual return will be different than expected. ...
  6. Financial Risk

    The possibility that shareholders will lose money when they invest in a company ...
  7. Compound Annual Growth Rate - CAGR

    The year-over-year growth rate of an investment over a specified period of time. ...
  8. Return On Investment - ROI

    A performance measure used to evaluate the efficiency of an investment or to ...
  9. Mean-Variance Analysis

    The process of weighing risk against expected return. Mean variance analysis ...
  10. Ulcer Index - UI

    An indicator developed by Peter G. Martin and Byron B. McCann that is used to ...
Related Articles
  1. Determining Risk And The Risk Pyramid
    Investing Basics

    Determining Risk And The Risk Pyramid

  2. Introduction To Investment Diversification
    Investing Basics

    Introduction To Investment Diversification

  3. Calculating The Equity Risk Premium
    Options & Futures

    Calculating The Equity Risk Premium

  4. An Introduction To Value at Risk (VAR)
    Options & Futures

    An Introduction To Value at Risk (VAR)

  5. How To Convert Value At Risk To Different ...
    Active Trading Fundamentals

    How To Convert Value At Risk To Different ...

  6. The Equity-Risk Premium: More Risk For ...
    Fundamental Analysis

    The Equity-Risk Premium: More Risk For ...

  7. Financial Concepts
    Options & Futures

    Financial Concepts

  8. Matching Investing Risk Tolerance To ...
    Active Trading Fundamentals

    Matching Investing Risk Tolerance To ...

  9. Top 8 Ways Companies Cook The Books
    Personal Finance

    Top 8 Ways Companies Cook The Books

  10. Herding Tendencies Among Analysts
    Investing Basics

    Herding Tendencies Among Analysts

comments powered by Disqus
Hot Definitions
  1. Ascending Triangle

    A bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs.
  2. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  3. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  4. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  5. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
  6. Jeff Bezos

    Self-made billionaire Jeff Bezos is famous for founding online retail giant Amazon.com.
Trading Center