What Is a Political Risk?
Political risk is the uncertainty brought to the economic benefits of foreign-invested enterprises by changes in the political environment of the host country or the change in political relations between the host country and other countries. Incidents that have the potential to cause economic losses to foreign-invested companies include: confiscation, expropriation, nationalization, political intervention, host country's regime change, war, social unrest and violent conflict within the host country, and deterioration in the relationship between the host country and the home country or a third country Wait. [1]
Political risk
Right!
- Political risk is the uncertainty brought to the economic benefits of foreign-invested enterprises by changes in the political environment of the host country or the change in political relations between the host country and other countries. Incidents that have the potential to cause economic losses to foreign-invested companies include: confiscation, expropriation, nationalization, political intervention, host country's regime change, war, social unrest and violent conflict within the host country, and deterioration in the relationship between the host country and the home country or a third country Wait. [1]
- Risk of loss due to conflicts between races, religions, interest groups and the state, or due to changes in policies and institutions and the alternation of rights.
- Political risk: refers to the risk that a commercial bank will not be able to recover financial assets in a particular country and suffer losses due to adverse factors such as political turmoil in a particular country.