Political risk
Political risk is the possibility of expropriation and the unanticipated restriction of cash flows to the parent by a foreign government.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Political risk. Refers to the possibility of expropriation and the unanticipated restriction of cash flows to the parent by a foreign government.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Political risk. Potential actions by a host government that would reduce the value of a company's investment.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
