Term:
Event Risk
Definition:
Situation occurring when the credit standing of a corporation changes because of certain events (e.g. merger, acquisition, leveraged buyout). Some corporations are subject to event risk because they are heavily exposed in a specific area (e.g. political changes for corporations exposed in a certain country, climatic changes for corporations dependent on a specific crop).
Domain:
Finance
Source:
World Bank: Glossary of Finance and Debt