A company-specific risk premium (CSRP) is often included within discount rates used in fair value measurements. However, there is diversity in practice within the valuation community as to what the premium should account for and how it should be quantified. Additionally, a CSRP is often subjectively applied without identification, quantification, or support of its underlying risk components. When properly applied, a CSRP can be used as a tool to align the discount rate with the risks of a subject business or asset, and their associated forecasts. Please see the summarized data from the Company-Specific Risk Premium survey.