political risk
Government-related investment danger
Political risk is the potential for losses or setbacks due to government actions, instability, or policy changes in a country.
Businesses assess political risk when operating abroad: The company factored political risk into its decision to build a factory there.
Nationalization, regulatory shifts, civil unrest, and regime change all constitute political risks.
The term appears frequently in finance, insurance, and international business contexts.
Forcible regime changes
- uprisingsOrganized resistance movements
- turmoilViolent disturbance or confusion
- riotsViolent public disturbances
- revolutionsTurnovers of power
unrest · rebellion · insurrection · civil war · overthrow · protests · chaos · factionalism
Supreme independent authority
- diplomacyNegotiation between nations
- sanctionsPunitive international restrictions
- alliancesFormal unions for cooperation
- hegemonyDominant group's control
treaties · borders · territory · intervention · proxy wars · spheres of influence · superpower · colonialism
Adhering to requirements
- legislationOfficial enactment of statutes
- antitrustAgainst corporate market dominance
- oversightSupervision or inadvertent omission
- expropriationGovernment taking private property
nationalization · bureaucracy · deregulation · enforcement · governance · accountability · red tape · permits
Organized effort toward goal
- votingFormally registering a choice
- candidatesThose seeking selection
- ballotVoting document
- partiesOrganized social gatherings
referendum · polls · turnout · populism · incumbent · primaries · electorate · gerrymandering
Rapid, unpredictable changeability
- forecastingEstimating future conditions
- contingencyUncertain possible event
- probabilityQuantified chance of occurrence
- unpredictabilityState resisting forecasts
exposure · mitigation · due diligence · hedging · rating agencies · contagion · early warning · insurance
coups
Forcible regime changes
- uprisingsOrganized resistance movements
- turmoilViolent disturbance or confusion
- riotsViolent public disturbances
revolutions · unrest · rebellion · insurrection · civil war · overthrow · protests · chaos · factionalism · secession
sovereignty
Supreme independent authority
- diplomacyNegotiation between nations
- sanctionsPunitive international restrictions
- alliancesFormal unions for cooperation
hegemony · treaties · borders · territory · intervention · proxy wars · spheres of influence · superpower · colonialism · summit
compliance
Adhering to requirements
- legislationOfficial enactment of statutes
- antitrustAgainst corporate market dominance
- oversightSupervision or inadvertent omission
expropriation · nationalization · bureaucracy · deregulation · enforcement · governance · accountability · red tape · permits · taxation
campaign
Organized effort toward goal
- votingFormally registering a choice
- candidatesThose seeking selection
- ballotVoting document
parties · referendum · polls · turnout · populism · incumbent · primaries · electorate · gerrymandering · manifesto
volatility
Rapid, unpredictable changeability
- forecastingEstimating future conditions
- contingencyUncertain possible event
- probabilityQuantified chance of occurrence
unpredictability · exposure · mitigation · due diligence · hedging · rating agencies · contagion · early warning · insurance · repatriation
- business riskscompetition, data breach, cyberattack, recession, lawsuit
- insuranceinsurance, coverage, auto insurance, life insurance, home insurance
- investmentinvestor, foreign investment, financier, direct investment, backer
- market risksmarket crash, market volatility, market correction, market panic, volatility
- seizureexpropriation, condemnation, confiscation, appropriation, takings
- systemic risks
political riskpolitical stability
Enduring, predictable state authority
rule of law · good governance · constitutional order · political order
political riskmarket risk
Exposure to price fluctuations
economic risk · financial risk · credit risk · business risk · market volatility
political, risk, politic, politics, politically, politicize, politicized, politicization, politician