Political Risk definition

Political Risk means, in relation to a State Party, the risk of a change in the political situation of that State Party stemming from, among other things, a change in the control of the government of that State Party, a change in the social fabric of that member State, or the existence of other non-economic factors which affect that State Party. Political risk covers the potential for (i) internal and external conflicts within or involving that State Party, (ii) the expropriation of property in that State Party, and (iii) the inconvertibility of the currency of that State Party: The assessment of political risk requires an analysis of factors such as the relationships between various groups in that State Party, the decision-making process in the government of that State Party, and the history of that State Party;
Political Risk means any type of event, organized resistance or actions intending or implying the intention to overthrow, supplant or change the existing ruler or constitutional government, including but not limited to nationalization; confiscation; expropriation (including selective discrimination and forced abandonment); deprivation; requisition; revolution; rebellion; insurrection; civil commotion assuming to proportion of or amounting to an uprising and military and usurped power.
Political Risk. Political risk includes a greater potential for coups d’état, revolts, and expropriation by govern- mental organizations.

Examples of Political Risk in a sentence

  • Political Risk: the risk of government intervention is particularly high in the emerging markets because of both the political climate in many of these countries and the less developed character of their markets and economies.

  • An alternative measure of institutional quality, widely used in the FDI literature, is the International Country Risk Guide (ICRG) Political Risk rating, which aggregates numerical evaluations of twelve dimensions of political risk.18 The indicator ranges from 0 (high political risk) to 100 (no political risk).

  • Regulatory and Political Risk The Company’s rate-regulated subsidiaries and certain investments subject to significant influence are subject to risk of the recovery of costs and investments in a timely manner.

  • State Parties agree that, in order to enable DFIs, through the forum of the Network to mitigate against and minimize Political Risk in the financing of public sector projects, they will support the Network in investigating the feasibility and provide resources towards the establishment of a regional insurance guarantee facility aimed specifically at insuring against Political Risk in such projects.

  • Political Risk has a significant impact; Volatile costs mean company has to plan for scenarios where costs skyrocket.


More Definitions of Political Risk

Political Risk is the risk that an investment’s returns could suffer as a result of political changes or instability in a country. Instability affecting investment returns could stem from a change in government, legislative bodies, other foreign policy makers, or military control.
Political Risk means a Risk described in Subsections 2(4), 2(5), 2(6) or 2(7);
Political Risk means the non-payment of all or part of an insured receivable by a Buyer due to the occurrence of one of the following events in a country for which a Waiting Period is specified in the Special Terms: If there is no Waiting Period or the Waiting Period is “none,” there shall be no Political Risk cover for Buyers located in that country.
Political Risk means M/T Transfer Risk or Other M/T Political Risk. “Political Risk Guarantee” shall have the meaning set forth in Section 4.01.
Political Risk means Transfer Risk, Covered Expropriation Risk, Political Violence Risk or Export License Risk.
Political Risk means a Risk described in Subsection 1(4), 1(5), 1(6), or 1(7),
Political Risk means an obstacle preventing the Insured from fulfilling its obligations under theContract of Sale as a direct result of one or more of the following: