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One of the required reconciliations in converting governmental fund financial statements to governmental activities statements at the government-wide level is an adjustment for internal service funds' assets, liabilities, operating income (loss), and transfers.
Systematic Risk
The inherent risk associated with the entire financial system or market, which cannot be eliminated through diversification.
Risk-Averse
A description of an investor or investment strategy that prioritizes the minimization of risk over potential returns.
Total Risk
Total risk encompasses all the various types of risk a business or investment might face, including both systematic and unsystematic risks.
Unsystematic Risk
A type of risk that is specific to a single company or industry, also known as diversifiable or idiosyncratic risk.
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