
§8.1 C
ATEGORIES OF
P
ROJECT
F
INANCE
R
ISK
Project finance risks can be divided into three main categories:
Commercial risks (also known as project risks) are those inherent in the proj-
ect itself, or the market in which it operates, as summarized in §8.3 and dis-
cussed in this chapter as a whole.
Macro-economic risks (also known as financial risks) relate to external eco-
nomic effects not directly related to the project (i.e., inflation, interest rates,
and currency exchange rates); these risks are considered in Chapter 9.
Political risks (also known as country risks) relate to the effects of government
action or political force majeure events such as w