Engineering risk

Definition:

The risk associated with the impact on a project's cash flows from deficiencies in design or engineering. Also known as design risk.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Variable cost

A cost that is directly proportional to the volume of output produced. When production is zero, the variable cost is equal to zero.

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio