The Assumption of Risk as an Effective Factor on Responsibility in Foreign Investment Disputes with an emphasis on International Arbitration Practice

The risk is assumed in all foreign investments, and its amount merely varies according to the subject and place of investment. The assumption of risk of investing as an effective factor in responsibility in foreign investment disputes has been recognized in international arbitration practice. However, the amount of this impact, due to the causal link between the role of the investor and damage, can reduce the amount of compensation or the elimination of responsibility. international arbitration practice does not distinguish between a situation in which an investor ignores the assumption of the investment risk with negligence, and the situation in which the investor increases investment risk with own fault, and both has considered in determining responsibility. This article tries to examine the concept of the assumption of risk of foreign investment with an emphasis on International Arbitration Practice.