Idiosyncratic Risk

February 1, 2026 · 1 min read

Idiosyncratic Risk is a finance/economics concept used to analyze decisions, risk, or performance. The key is what changes when it moves up or down-prices, cash flows, risk, or incentives.

Example: You might use Idiosyncratic Risk to compare alternatives and choose a plan.

Related terms: Deflation, Safe Withdrawal Rate, Depreciation.