Private sector investment continues to soar, especially in South America, the Middle East, China, and India. Nevertheless, there is a substantial investment that does not take place due to the perception of International Political Risk. Although political risks can never be eliminated, it is certainly possible to mitigate risk sufficiently allowing for an organization to invest in foreign infrastructures and commerce.
There is no single definition of Political Risk. In general however, the term refers to adverse actions or inactions, by governments that can impact the specific Political Risk Environment
These risks are beyond control of the client and they need to be protected.