What is an example of a non-systematic risk?

Non-systematic risk refers to the risks that are unique to a particular company or industry, as opposed to risks that affect the entire market or economy. An example would be operational issues within a specific company. These issues might include management problems, production delays, or a failure in quality control, and they can significantly impact that company's performance without having a broader effect on the entire marketplace.

In contrast, the other options represent systematic risks. Economic downturns affect economies as a whole, while claims from a natural disaster can have widespread implications for industries and livelihoods. Similarly, changes in government regulations can influence not just one company but an entire sector, altering competitive dynamics across the board. By focusing on the internal factors that can influence a company's success, understanding non-systematic risk highlights the importance of management, strategy, and operational efficiency in mitigating impacts specific to that organization.