Introduction
According to Daniel Wagner, “The exercise of political power is the root cause of political risks in international business. How political power is exercised determines whether government action threatens a firm's value. For example, a dramatic political event may pose little risk to a multinational enterprise, while subtle policy changes can greatly impact a firm's performance. A student-led protest for political change may not change the investment climate at all, while a change in local tax law can erode a firm's profits very quickly. It is the task of the risk manager or company CFO to identify whether a government action poses a threat to a firm's financial well-being.”
Defining Political Risks
There are various definitions to Political Risks:
“In export financing, the risk of loss due to such causes as currency inconvertibility, government action preventing entry of goods, expropriation or confiscation, and war.”
“The likelihood that political......

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Title: Risk Assessment
Approximate Word Count: 2094
Approximate Pages: 9 (250 words per double-spaced page)

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