Force majeure risk

(redirected from Force Majeure Risks)

Force majeure risk

The risk that there will be a prolonged interruption of operations for a project finance enterprise due to fire, flood, storm, or some other factor beyond the control of the project's sponsors.

Force Majeure Risk

The risk of loss to a company from an act of God. For example, force majeure risk is the risk that company will lose production from a factory if a tornado comes and destroys the factory. See also: Act of God bond.
References in periodicals archive ?
Ecopetrol is not assuming any force majeure risks except for those resulting from sabotage or guerrilla-related activities.
Also, an additional $100 million project contingency fund will be capitalized from bond proceeds to address any variances from the contract or delays due to certain uncovered force majeure risks.
The project's contracts closely match expenses against revenues and require Ecopetrol to assume a large portion of the uncontrollable risks, such as currency-exchange-rate risk and force majeure risks.