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.
BREAKING DOWN '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.