Chapter 14: Emerging and Future Risks

Geopolitical risk is the risk of financial, market, or personnel losses because of political decisions or disruptions. Also known as ‘political risk’ it has become a serious issue for many global players due to the social and political volatility experienced in many parts of the world. Although it might be seen as mostly bearing on global players, in fact many medium size organisations have international trade relations with partners in sensitive parts of the world.

Political and credit risks in both developed and developing markets, including changes in trade policy by Western countries, will continue to challenge multinational businesses, according to most economists and experts worldwide.