Political risk is the risk an investment’s returns could suffer as a result of political changes or instability in a country. Instability affecting investment returns could stem from a change in government, legislative bodies, other foreign policymakers or military control. Political risk is also known as geopolitical risk, and becomes more of a factor as the time horizon of investment gets longer. They are considered a type of jurisdiction risk.
Click to rate this post!
[Total: 0 Average: 0]