Classes of Political Risk. Types

Strategic Risk Management
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Annalisa Cordoba
Manager, Spain
There turn out to be no less than 10 types of political risk. I stumbled on this useful list and thought I'd share it since this is a risk management forum. 1. GEOPOLITICS Interstate wars, great power shifts, multilateral economic sanctions, and interventions 2. INTERNAL CONFLICT Social unrest, ethnic violence, migration, nationalism, separatism, federalism, civil wars, coups, and revolutions 3. LAWS, REGULATIONS, POLICIES Changes in foreign ownership rules, taxation, environmental regulations, and national laws 4. BREACHES OF CONTRACT Government reneging on contracts, including expropriations and politically motivated credit defaults 5. CORRUPTION Discriminatory taxation and systemic bribery 6. EXTRATERRITORIAL REACH Unilateral sanctions and criminal investigations and prosecutions 7. NATURAL RESOURCE MANIPULATION Politically motivated changes to the supplies of energy and rare earth minerals 8 (...) Read more? Sign up for free


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