Infrastructure risk

Infrastructure risk

The risk associated with the impact on project cash flows from infrastructure problems. Also known as transportation risk.

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.