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What is Political Risk

Political Decision-Making and Security Intelligence: Recent Techniques and Technological Developments
It is the risk that investment's returns could suffer as a result of political changes or instability in a country.
Published in Chapter:
Intelligence Analysis, Uncertainty, and Risk Analysis
DOI: 10.4018/978-1-7998-1562-4.ch004
Abstract
Today we live with new threats, for the end of traditional military threats (territory and national sovereignty), the complexity of economic and commercial relations, and because the defense became “global” and implemented through information actions. Examples of new threats are telematic terrorism, international terrorism, religious fanaticism, toxic waste disposal, trafficking of sex, illegal people trafficking, and as an extension, organized crime, eversion, national economic security. Examples of new wars are cultural wars, bacteriological wars, technological wars. The chapter analyzed the concept of threat vs. risk, focusing on possible risks identification criteria and the main analytical approaches for risk management.
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Factors Influencing International Institutional Investments: A Case Study of the 21st Century India
A risk to foreign investors’ investments which make it difficult for the host country to enable a conducive business environment due to the political instability or disruptions in state policies. Political risks make the investments of foreign investors unsafe due to the uncertain political prospects of the country of investment.
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The Effects of Political and Economic Risk on FDI: A Theoretical Survey
Refers to the damage or negative influence on businesses as a result of the attitudes and behaviors of politicians and the costs of political events etc.
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