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Home > QFINANCE Dictionary > Definition of political risk

Finance and Business Dictionary

Definition of "political risk"

Economics

possible bad effect on government of decision the potential negative impact on a government of a policy decision such as raising interest rates

Recommended Further Reading (Term count)

  • Mastering Risk, Volume 1: Concepts
    James Pickford (ed) (2000)
    An impressive cast of contributors bring the latest ideas on the management of financial risk and offer a guide to best practice. Provides a comprehensive overview of the key concepts of risk management. The practical relevance of these concepts is highlighted throughout with recent examples and short case studies.
  • Multinational Business Finance
    David K. Eiteman, Arthur I. Stonehill, and Michael H. Moffett (11th ed 2007, originally 1973)
    Helps managers of multinational enterprises recognize and capitalize on the unique characteristics of the global markets. Communicates the background and complexities of international finance, maintaining a managerial focus. Examines the environment that the multinational business operates in, and offers guidance on the specific financial and business measures that need to be taken into account for varying circumstances.
  • Political Risk: Countering the Impact on Your Business
    by Ian Bremmer
    Over the past several years, and across a broad range of companies, corporate decision-makers seeking opportunities overseas have learned that it is not enough to have a knowledge of a foreign country’s economic fundamentals. They also have to understand the forces and dynamics that shape these countries’ politics. This is especially true for emerging markets, where politics matters at least as much as economic factors for market outcomes. Of...
  • Dangers of Corporate Derivative Transactions
    by David Shimko
    It’s easy for managers to overlook risks. Financial risk managers may ignore nonfinancial risks. Business managers responsible for a particular line item (such as costs) may downplay risks unrelated to their particular line item. Firms often manage their risks compartmentally—for example: the treasury department for foreign exchange and interest rates; the procurement department for commodity purchases; and the insurance department for...

Definitions of ’political risk’ and meaning of ’political risk’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’political risk’ and other financial terms with our online QFINANCE Financial Dictionary.

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