Economic risk

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.

Economic Risk

The possibility that an economic downturn will negatively impact an investment. For example, launching a luxury product immediately before or during a recession carries a great deal of economic risk. Economic risk is closely related to political risk as government decisions impacting the economy may also affect an investment. For example, a central bank may raise interest rates or the legislature may raise taxes, and this may result in economic conditions impacting an investment.
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a partnership, such partner bears the economic risk of loss for the partnership liability, unless the economic risk of loss for that liability is borne by another partner.
The IRS National Office believes this applies even though the taxpayer bears the full obligation to perform and the complete economic risk, and the customer may never know the services were not provided directly by the taxpayer.
These forward-looking statements are subject to business and economic risk and reflect management's current expectations, and involve subjects that are inherently uncertain and difficult to predict.
Contract awarded for consulting engineering development and evaluation est tech environmental and economic risk proy: best carr sch rd - 7 segment: ca 2 occ.
In particular, the proposed regulations provide guidance as to when and to what extent a partner is treated as bearing the economic risk of loss for a partnership liability when multiple partners bear the economic risk of loss for the same partnership liability (overlapping economic risk of loss).
Many American manufacturers hedge the economic risk for long-dated exposures as well as short-dated exposures," Coleman explains.
Political and economic risk is always a factor in international commerce due to the unavoidable differences between the laws, customs and policies of foreign governments.
In an exhaustively researched series for the Los Angeles Times, Peter Gosselon identifies a three decade-long political and corporate effort to shift economic risk away form business and onto the backs of Americans.
Under the general rule of IRC section 752, a recourse liability is allocated to the partner that bears the economic risk of loss.
Shiller's vision of a new financial order, however, proposes a contradictory expansion of markets to reduce the economic risk that individuals and countries face.
If shifting economic risk is what people are responding to, then you need to create an organizational template to assume and manage economic risk," he asserts.
The profit motive, when applied to the business entity with the economic risk of the remediation, and the continuity of the business of accepting the transfer and assuming the economic risk of the environmental remediation, enables insurers to issue coverage without the concern of the so-called "moral risk" which would be inherent if the owner were to seek coverage to cap its own cost of remediation.

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