Micro Country Risk

Micro Country Risk

The risk that a foreign government will significantly alter its policies or other regulations so that it significantly affects a particular industry, company, or project. Rather than the risk of hurting, say, exporters or foreign-owned businesses in general, micro country risks imply that a government will deliberately target someone or something. For example, the political climate of a country in which defense contractors operate may turn against one particular company because of its perceived excesses. The government may then revoke its contract while allowing other contractors to work in the country. See also: Reputational risk, political risk, country risk.