Geopolitical Risk

Geopolitical risk refers to the potential for political instability or conflict between countries that can impact global markets and economies. Factors like war, government changes, trade disputes, and diplomatic tensions can create uncertainty for businesses and investors. For example, a conflict in one region might disrupt supply chains or lead to fluctuations in oil prices. Companies and investors must consider these risks when making decisions, as geopolitical events can significantly influence financial performance and strategic planning. Understanding these dynamics is essential for navigating today's interconnected world.