Infrastructure risk

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Infrastructure risk

The risk associated with the impact on project cash flows from infrastructure problems. Also known as transportation risk.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Infrastructure Risk

The risk of loss due to the possibility that the infrastructure in an area may be insufficient to complete a project or transport a good. For example, there may be no highways or major roads in an area, which will make it difficult or impossible to transport goods to the area in a timely manner. This may result in a loss to the seller. Infrastructure risk is higher in developing countries or in remote areas of developed countries. It is also called transportation risk.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
* Machine learning and AI to identify energy transportation risk in wholesale (e.g., oil pipelines) and consumer (gas delivery to residential) in physical delivery assets.
* Global transportation risk due to urbanization, population growth, and demographic change
In recent years, the demand for hazmat has increased, its freight volume has increased year by year, and the potential transportation risk is also expanding.
According to Table 1, the evaluation objects for quality risk of the food supply chain can be generalized into five categories: raw material supply risk [33-37]; production and processing risk [34, 37-42]; logistics, warehousing, and transportation risk [40-46]; sales and consumption risk [42, 47-51]; and government regulatory risk [52-57].
Some have a minimal transportation risk but others, especially day camps and resident camps with trip programs, have significant transportation risk.
"It's just much better for all involved to have a facility located actually in the region, where you minimize transportation risk, you minimize cost associated with transportation, and then, of course, you're able to be a part of the community," Owens said.
"Lignite is not subject to the price volatility and transportation costs associated with other fuel sources and transportation risk is virtually eliminated because the lignite is located with an 8-mile radius of the facility
"The ability to see what is happening ahead of you and to react to it is one of the most important things in driving,'' sid Chris Hayes, second vice president of transportation risk control with Travelers, a Hartford-based insurance company.
In addition, using total cost and transportation risk as objectives for this model can help decision makers to have a good tradeoff between environmental and economic aspects.
As the recent World Economic Forum (WEF)/Accenture report, New Models for Addressing Supply Chain and Transport Risk, points out, most enterprises have logistics and transportation risk management protocols that can address localized disruptions.
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