regulatory risk

British  

noun

1. a risk to which private companies are subject, arising from the possibility of legislation or regulations that will affect business being adopted by a government

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Example Sentences

Jim Angel, a finance professor at Georgetown University’s McDonough School of Business, suggested that Nvidia’s letter to Wall Street analysts was a precarious move, noting “there’s always the legal and regulatory risk when the CEO says, ‘Yes, everything is wonderful.’”

From MarketWatch

“The uncertainty of all the new red tape puts a damper on new investment and development today, especially on federal lands where the burden is highest. Consequently, companies prioritize their nonfederal leases because there’s less regulatory risk.”

From Washington Times

"A blunt policy execution and communications strategy could alter the regulatory risk premium that global investors require for investing in Chinese securities," it said in a note.

From Reuters

“The mounting regulatory risk Robinhood faces makes us concerned that the public may see Robinhood’s stated goal to ‘democratize investing’ as a ruse to lure them into speculative trading and gambling that benefits Robinhood more than the individual investor,” David Trainer, chief executive of New Constructs, wrote in commentary ahead of the IPO.

From Washington Post

While the market had known state-owned enterprises were used to pilot the economy, “the tech, internet and fintech companies were valued close to the valuation we’d have in the U.S., and so didn’t discount the regulatory risk,” he said.

From Reuters