Investment Risk

/ɪnˈvɛstmənt rɪsk/

Definitions

  1. (n.) The potential for loss or underperformance in the value of an asset or investment, assessed and managed in legal and financial agreements.
    The contract included clauses to mitigate investment risk for both parties.

Forms

  • investment risk

Commentary

Investment risk is often quantified and allocated through contract provisions and regulatory standards to balance interests and responsibilities among stakeholders.

This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.

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