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Legal Risk

   Also found in: Wikipedia 0.01 sec.
Legal risk
The risk associated with the impact of a defect in the documentation on cash flow or debt service.

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.


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In view of the consequences of climate change, there will be a real legal risk for infrastructure developers that have to bear unforeseen liabilities for construction standards that do not address the increasing intensity of climate threats such as flooding, heat waves and storms, experts said.
Lane County Circuit Court judges urged the board to restore jail capacity, and Presiding Judge Mary Ann Bearden said there was "substantial" legal risk in not reopening jail beds.
The book provides information and advice for anyone involved in media--from Webmasters to journalists and editors-- on the legal risks publishers should be aware of prior to publication, how to avoid libel and privacy conflicts, and what defenses there are in the event a claim is filed.
 
 
 
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