Above Ground Risk

AAA

DEFINITION of 'Above Ground Risk'

Non-quantifiable risks that can adversely affect a project or investment. Above ground risk is generally used in the energy industry to refer to non-technical risks such as environmental issues and the regulatory climate. More broadly, above ground risk refers to a wide range of somewhat nebulous risks such as political risk, corporate risk, security and corporate governance whose impact is difficult to quantify, but could be significant should one or more of these risks become a real threat.

INVESTOPEDIA EXPLAINS 'Above Ground Risk'

Above grounds risks may also include a number of risks that are less acknowledged such as corruption, bribery and conflicts of interest. The degree of above ground risk differs from one nation to the next. Countries with pro-business policies, strong governance and efficient legal systems may have a lower degree of above ground risk than those nations that do not possess these attributes.

RELATED TERMS
  1. Country Risk

    A collection of risks associated with investing in a foreign ...
  2. Political Risk

    The risk that an investment's returns could suffer as a result ...
  3. Risk

    The chance that an investment's actual return will be different ...
  4. Macro Risk

    A type of political risk in which political actions in a host ...
  5. Legislative Risk

    The risk that legislation by the government could significantly ...
  6. Service Mark

    A brand name or logo that identifies the provider of a service. ...
Related Articles
  1. Evaluating Country Risk For International ...
    Options & Futures

    Evaluating Country Risk For International ...

  2. Corporate Bonds: An Introduction To ...
    Bonds & Fixed Income

    Corporate Bonds: An Introduction To ...

  3. Introduction To Investment Diversification
    Investing Basics

    Introduction To Investment Diversification

  4. 5 Ways To Measure Mutual Fund Risk
    Mutual Funds & ETFs

    5 Ways To Measure Mutual Fund Risk

Hot Definitions
  1. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  2. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  3. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  4. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  5. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
  6. Earnings Multiplier

    An adjustment made to a company's P/E ratio that takes into account current interest rates. The earnings multiplier is used ...
Trading Center