Search results for: “financial risk”
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Economic Risk
In project financing, the risk that the project’s output will not be salable at a price that will cover the project’s operating and maintenance costs and its debt service requirements….
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Diversifiable Risk
Related: unsystematic risk….
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Default Risk
Also referred to as credit risk (as gauged by commercial rating companies), the risk that an issuer of a bond may be unable to make timely principal and interest payments….
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Currency Risk Sharing
An agreement by the parties to a transaction to share the currency risk associated with the transaction. The arrangement involves a customized hedge contract embedded in the underlying transaction….
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Currency Risk
Related: Exchange rate risk…
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Cross-Border Risk
Refers to the volatility of returns on international investments caused by events associated with a particular country as opposed to events associated solely with a particular economic or financial agent….
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Credit Risk
The risk that an issuer of debt securities or a borrower may default on his obligations, or that the payment may not be made on a negotiable instrument. Related: Default risk…
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Country Economic Risk
Developments in a national economy that can affect the outcome of an international financial transaction….
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Counterparty Risk
The risk that the other party to an agreement will default. In an options contract, the risk to the option buyer that the option writer will not buy or sell the underlying as agreed….
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Completion Risk
The risk that a project will not be brought into operation successfully….
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Company-Specific Risk
Related: Unsystematic risk…
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Commercial Risk
The risk that a foreign debtor will be unable to pay its debts because of business events, such as bankruptcy….
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Call Risk
The combination of cash flow uncertainty and reinvestment risk introduced by a call provision….
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Business Risk
The risk that the cash flow of an issuer will be impaired because of adverse economic conditions, making it difficult for the issuer to meet its operating expenses….
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Bankruptcy Risk
The risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk….