Geographic risk

Geographic risk

Risk that arises when an issuer issues policies concentrated within certain geographic areas, such as the risk of concentrating their coverage in hurricane or earthquake prone regions.

Geographic Risk

The risk to an investment in a specific geographic area. Specifically, it refers to the possibility that a natural disaster to which an area is prone will negatively impact an investment. For example, a company pumping oil in the Gulf of Mexico carries a geographic risk that a hurricane will destroy its infrastructure. See also: Country risk.