Standalone Risk


DEFINITION of 'Standalone Risk'

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.

BREAKING DOWN 'Standalone Risk'

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.

  1. Unsystematic Risk

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

    The risk inherent to the entire market or entire market segment. ...
  3. Financial Risk

    The possibility that shareholders will lose money when they invest ...
  4. Risk

    The chance that an investment's actual return will be different ...
  5. Political Risk

    The risk that an investment's returns could suffer as a result ...
  6. Liquidity Risk

    The risk stemming from the lack of marketability of an investment ...
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