Natural risk

Natural risks or nature risks are risks recognized in risk management that are related to the loss of natural assets.

They may impact businesses or economies by impacting directly on operations or by negatively affecting society in a way that then creates market risks.

The loss of nature can also contribute to systemic geopolitical risk because nature's assets and services, such as clean air, plentiful fresh water, fertile soils, a stable climate, provide vital public goods on which human societies rely for their functioning.

An example is tropical deforestation.

It is a key source of nature risk for sectors that either have an impact or dependency on tropical forests.