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  2. Share Prices
  3. Finance Glossary
  4. Terms Beginning With P
  5. Political Risk

Political Risk

Definition of 'Political Risk'

The risk of politically-motivated interference be a foreign government in the affairs of a Multi-National Company, that adversely affects its cash flows.

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Related Terms

Political Business CycleFactor Risk / Non-Factor RiskEmerging MarketsCountry RiskTrade UnionDiversifiable RiskMarket RiskPrice RiskRelevant RiskRisk LoverRisk PremiumRisk TransformationSecurity Market LineArbitrage Pricing TheoryBasis RiskBusiness RiskCapital Market LineConflict of PreferencesContractual TheoryCounterparty Risk

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