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Classes of Political Risk. Types
Annalisa Cordoba, Manager, Spain, Member
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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