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Political risk

Political risk is the risk that an investment’s returns could be affected by political changes or instability in a country. This type of risk can include changes in government policies, regulations, or laws that could negatively impact the investment’s value or the ability to make profits. Political risk can also include events such as civil unrest, terrorism, war, or natural disasters. Investors often assess the level of political risk before making investment decisions, particularly when investing in foreign countries.

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