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 ?
Some force majeure risks are commercially insurable events.
Ghosh and Jintanapakanont [18] classified the riskfactors into 9 major types, including financial and economic risks, contractual and legal risks, subcontractors-related risks, operational risks, safety and social risks, design risks, force majeure risks, physical risks, and delay risks.
They are financial and economic risks ([F.sub.1]), contractual and legal risks ([F.sub.2]), subcontractors-related risk ([F.sub.3]), operational and safety risks ([F.sub.4]), political and social risks ([F.sub.5]), design risk ([F.sub.6]), and force majeure risk ([F.sub.7]) as listed in Table 1.
Projects face political and force majeure risks throughout.