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Legal Risk |
Also found in: Wikipedia | 0.01 sec. |
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Legal risk Legal Risk The potential loss that may occur to an investment as a result of insufficient, improperly applied, or simply unfavorable legal proceedings in the country in which the investment is made. For example, a country may have inadequate bankruptcy protection or, in an extreme circumstance, the government may be able to seize property without provocation. On the other hand, legal risk exists even in countries that operate under the rule of law: a court, for instance, may find against a company in a given lawsuit, creating a precedent for other companies with similar operations. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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