Headline risk refers to the potential impact on a company's stock prices due to negative media coverage of an event. This type of risk can be damaging to a company's reputation and can cause a decline in stock prices. As a knowledgeable finance professional, it is important to understand and manage headline risk in order to protect the interests of investors. By staying informed and monitoring media coverage, we can mitigate the potential negative effects of headline risk on a company's financial performance.