political risk

  

Definition

Probability of loss due to political instability in the buyer's country that may result in cancellation of a license or otherwise affect the buyer's ability to make payments. Political risks are insurable risks, and overlap with the political component of force majeure risks.

Use political risk in a sentence

  • The political risk must always be considered as all business operate at the discretion of the government who is in control of the land.

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  • We are lucky in the United States of American that for the most part we can run our businesses without a chance of political risk that some countries have.

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  • It was too much of a political risk to have that man be his running mate, because no one liked him at all.

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