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
political risknoun
Any financial or other risk that stems from the possibility of a nation changing its policies.
Wikidata
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.
Numerology
Chaldean Numerology
The numerical value of political risk in Chaldean Numerology is: 3
Pythagorean Numerology
The numerical value of political risk in Pythagorean Numerology is: 1
Examples of political risk in a Sentence
The markets tend to ignore political risk, which generally has little influence over the real economy. But maybe they should be concerned this time, almost inconceivable six months ago, the election by the end of the year of an openly protectionist president inclined to renegotiate federal debt is now plausible in the United States.
If we got to the 31st of October, and the EU have not shown the willingness to negotiate a better deal ... the political risk of no Brexit is far worse than the economic risk of no deal, i would take us out of the European Union in that situation.
The weakness had been more political risk than any kind of fundamental risk to their business.
Political risk is potentially the new factor for 2015 and not just with Greece ... the risk could be extended as we go into Spanish and Portuguese elections too.
It is increasingly likely that the election result won't produce a stable government and that naturally raises Portugal's political risk, which has in no way been discounted in Portuguese asset prices.
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"political risk." Definitions.net. STANDS4 LLC, 2024. Web. 26 Apr. 2024. <https://www.definitions.net/definition/political+risk>.
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