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.

单词	legal risk
释义	Legal risk 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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