Management - 12manage

Ring Fencing

Over a million managers and consultants are working together on management issues via 12manage each month...

Description of Ring Fencing. Explanation.



Log in

 

Definition Ring Fencing. Description.

 

Ring Fencing is a term that is used in a project finance context. Typically it is a legal and financial arrangement to work on risky projects and ventures in such a way that failure does not lead / reflect in the financials of the parent company. The risk is limited to the capital of the project venture. This type of financing is widely used in highly uncertain businesses like petroleum exploration, mining activities and also in ventures in non-conventional energy harnessing, infrastructure projects etc.


Forum

Comment on this Page

Compare with: Special Purpose Vehicle  |  Tax Haven  |  Joint-Venture  |  Chinese Wall

 

Return to Management Hub: Finance & Investing  |  Program & Project Management

 

More on Management  |  Return to Management Dictionary  | 

 

End of description Ring Fencing. An explanation.

 

 

Copyright 2010 12manage - The Executive Fast Track. V10.4 - Last updated: 16-3-2010. All names tm by their owners.