What does political risk mean?

Definitions for political risk
po·lit·i·cal risk

This dictionary definitions page includes all the possible meanings, example usage and translations of the word political risk.

Wiktionary

  1. political risknoun

    Any financial or other risk that stems from the possibility of a nation changing its policies.

Wikidata

  1. Political risk

    Political risk is a type of risk faced by investors, corporations, and governments. It is a risk that can be understood and managed with reasoned foresight and investment. Broadly, political risk refers to the complications businesses and governments may face as a result of what are commonly referred to as political decisions—or “any political change that alters the expected outcome and value of a given economic action by changing the probability of achieving business objectives”. Political risk faced by firms can be defined as “the risk of a strategic, financial, or personnel loss for a firm because of such nonmarket factors as macroeconomic and social policies, or events related to political instability.” Portfolio investors may face similar financial losses. Moreover, governments may face complications in their ability to execute diplomatic, military or other initiatives as a result of political risk. A low level of political risk in a given country does not necessarily correspond to a high degree of political freedom. Indeed, some of the more stable states are also the most authoritarian. Long-term assessments of political risk must account for the danger that a politically oppressive environment is only stable as long as top-down control is maintained and citizens prevented from a free exchange of ideas and goods with the outside world.

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Numerology

  1. Chaldean Numerology

    The numerical value of political risk in Chaldean Numerology is: 3

  2. Pythagorean Numerology

    The numerical value of political risk in Pythagorean Numerology is: 1

Examples of political risk in a Sentence

  1. Sahak Manuelian:

    The weakness had been more political risk than any kind of fundamental risk to their business.

  2. Kerry Craig:

    A lot of the rise in the second part of the quarter is because the political risk evaporated.

  3. Achintya Mangla:

    Technology and healthcare have two things in common: structural growth meaning growth is less correlated to global GDP growth and they're closely aligned with consumer trends and behavior. Investors have greater conviction in terms of investment in these sectors, these sectors are seen as more likely to weather short term volatility and geo-political risk.

  4. Ilan Solot:

    There have been a lot of factors supporting the rouble. One is the oil price and the second is the pricing out of (Ukraine-related) political risk, but now I can't see a catalyst for another leg higher.

  5. Gerald Khoo:

    We continue to favour the group's geographic diversity, not least because it diversifies political risk.

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"political risk." Definitions.net. STANDS4 LLC, 2024. Web. 5 May 2024. <https://www.definitions.net/definition/political+risk>.

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