Risks in Project Finance

Risks in project finance are potential challenges that could cause delays, cost overruns, or failures in a project. These include financial risks (such as not generating enough revenue), construction risks (like delays or technical problems), legal issues (such as regulations or permits), and market risks (changes in demand or prices). If these risks occur, they can threaten the project's success and make it less attractive to lenders and investors. Proper planning, risk assessment, and mitigation strategies are essential to manage and reduce these uncertainties, ensuring the project can deliver its intended benefits.