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  • Essay / Definition and characteristics of systematic and unsystematic risk

    This risk is something that is likely to lose something of value in our lives. This value can be defined as physical health, social status or financial wealth and others. This can be obtained from time to time or disappear when taking a risk following an action taken or an unexpected action in the future. Riskiness can also be seen as an intentional interaction with uncertainty. With this uncertainty, the potential, unpredictable and uncontrollable. This risk therefore comes from the actions taken, even if there is a factor of uncertainty in planning for the future. This risk presented itself in various forms of risk. In general, investors are generally vulnerable to two types of plays: systematic and unsystematic. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”? Get an original essay The first, systematic risk can be identified as a risk that always exists in market segments or markets, thereby affecting a quantity substantial amount of investor assets. It can also be called irreversible volatility risk as well as market risk. Systematic risk can also affect the entire market, not just in stocks or certain sectors. This type of risk can also be considered unpredictable and impossible to completely avoid. Examples include changes in interest rates, inflation, the country's economic recession and the ongoing war. The second risk is called unsystematic risk. Unsystematic risk is the risk that, compared to systematic risk, one incurs only losses on small amounts of assets rather than systematic losses. This risk can also be identified as unsystematic risk, specific risk, considerable risk and also called residual risk. This type of risk also refers to the uncertainty inherent in the investment of the invested company as well as in any sector. Examples that can be found are change in management, withdrawal of issued products, regulatory changes that reduce the company's sales as well as new competition that exists in the market to participate in a company's existing markets. business in which you have invested in profitability. Risks can be found in any area of ​​life as well as in management. This is something we should do whether we are running the main organization or just crossing the road, as it reflects the risks involved. However, it is easy for us to envisage risk-taking being operational in several other areas of practice. Here are some different risks. The first is economic risk. These economic risks may be perceived by or in low-opinion groups or may also be categorized as spending more than expected by risk-taking groups. The reasons can be found in various ways and conditions, for example, which can be expressed in an increase in the price of raw materials, a decrease in the construction of a publication date in the Official Gazette, an interruption in the production of new product processes, the emergence of new competitors that grow like rain after rain, losses of experienced manpower in the field, changes in political sectors of different opinions or even natural disasters that occur unexpectedly by the man. In addition to this, health also carries a risk. This risk is known as health, safety and environment (HSE) risk which..