Above Ground Risk

A A A

DEFINITION

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 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 country. These ...
  2. Political Risk

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

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

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

    The risk that legislation by the government could significantly alter the business ...
  6. Green collar

    A worker who is employed in an industry in the environmental sector of the economy, ...
  7. Topside

    The upper part of an oil platform—above the water line—that holds ...
  8. FPSO (Floating Production Storage ...

    Acronym for Floating Production Storage and Offloading. FPSO is a floating vessel ...
  9. Day rate (oil drilling)

    In oil production, a day rate is the amount a drilling contractor gets paid ...
  10. Gray Market

    An unofficial market where securities are traded. Gray (or “grey”) market trading ...
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

  5. Peak Oil: What To Do When The Wells ...
    Economics

    Peak Oil: What To Do When The Wells ...

  6. Investing In Natural Gas? Eye ETFs, ...
    Investing News

    Investing In Natural Gas? Eye ETFs, ...

  7. Fracking ETFs Or Drilling Services Stocks?
    Investing News

    Fracking ETFs Or Drilling Services Stocks?

  8. Turn Your Passion Into A Profitable ...
    Entrepreneurship

    Turn Your Passion Into A Profitable ...

  9. How Oil ETFs React To Falling Energy ...
    Chart Advisor

    How Oil ETFs React To Falling Energy ...

  10. Who are Venture Capitalists?
    Investing

    Who are Venture Capitalists?

comments powered by Disqus
Hot Definitions
  1. Amplitude

    The difference in price from the midpoint of a trough to the midpoint of a peak of a security. Amplitude is positive when calculating a bullish retracement (when calculating from trough to peak) and negative when calculating a bearish retracement (when calculating from peak to trough).
  2. Ascending Triangle

    A bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs.
  3. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  4. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  5. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  6. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
Trading Center