Definition: is a type of risk that can’t be technically calculated but can negatively affect a company’s project or investment. In most cases, such risks are associated with price fluctuations, the political climate in a specific country, environmental issues, or abrupt market variations. An above ground risk may also exist in the form of a corrupted individual, bribe, or situations where a conflict of interest is created. The level of potential above ground risks changes based on a specific country and its judicial system.
Synonyms and related words: legal risk, risk management, risk taker, risk analysis, risk assessment
In a Sentence:
Thanks to the positive business climate in Canada, the above ground risk level there was minimal. That’s why the management of Saiko Electronics decided to expand their business into the Great White North.
During an economic crisis, the above ground risk level of price fluctuations is abnormally high. As a result, most companies should avoid performing any uncertain investments.