An element of risk (specifically, price risk) that is diversifiable- i.e., major part of which can be eliminated by adding uncorrelated or conversely correlated components (i.e., securities) to an asset class or a portfolio. This risk element (specific market risk) only affects specific assets or components, usually specific, individual components. Characteristically, this risk represents the inherent factors that can inversely impact individual components or only a specific asset class.

The opposite of non-systematic risk is a systematic risk, which constitute the broader factors/ trends that have an impact on the entire financial system, and not only on a certain sector or asset class.

It is also known as specific risk or unsystematic risk or idiosyncratic risk.