Political Risk


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Political Risk

The risk that a foreign government will significantly alter its policies or other regulations so that it significantly affects one's investment. More broadly, it can apply to the risk that a nation will refuse to comply with an agreement to which it is a party, or that political violence will hurt an investment or business. For example, if one exports goods to a foreign nation, and that nation elects a new government that enacts protectionist tariffs, this will negatively impact the export business.
References in periodicals archive ?
BITs and Off-the-Shelf Indicators of Political Risk
Lloyd's managing agency Apollo Syndicate Management has appointed William Steeds as senior political risk underwriter for Syndicate 1969, effective immediately.
"Political risk is not new to this region," said Mr Al Rumaihi.
William Wright, MD of think-tank New Financial, reflects that political risk and financial markets have always gone hand-in-hand - and financial markets have often flourished on the back of it.
Continuing tensions between the United States and China, ongoing trade wars, Brexit and other changes within the Eurozone, the future of Iran'sand North Korea's nuclear programs, and tensions between Russia and the West are some of the key geopolitical risks cited by Marsh's Political Risk Map 2019.
HARTFORD, Conn: The Hartford launched its new credit and political risk insurance products that are designed to help corporations, financial institutions and private equity firms with international exposures manage their credit and political risks.
M2 EQUITYBITES-December 14, 2018--The Hartford unveils credit and political risk insurance products
Global Banking News-December 14, 2018--Hartford launches credit and political risk insurance
BANKING AND CREDIT NEWS-December 14, 2018--Hartford launches credit and political risk insurance
The Hartford launched new credit and political risk insurance products designed to help corporations, financial institutions and private equity firms with international exposures manage their credit and political risks.
According to Asiedu (2002), there are three major types of political risk that discourage foreign investors.
The assessment focuses on three indicators: operational risk, political risk, and exchange risk.

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