World Library  
Flag as Inappropriate
Email this Article

Government risk

Article Id: WHEBN0029626509
Reproduction Date:

Title: Government risk  
Author: World Heritage Encyclopedia
Language: English
Subject: Investment Canada Act, Financial risk
Collection: Financial Risk
Publisher: World Heritage Encyclopedia

Government risk

Government risk is an investment term used to collectively describe the impact of prospective changes in legislation, policies of the executive branch within existing legislation, and corruption.

It is typically referenced as distinct from other forms of risk, such as market risk, credit risk, price risk, and natural risk when assessing the viability of an investment project.

Distinction from Country Risk

It is often confused with the term "country risk" when assessing investments in foreign countries, but government risk is in fact a subset of country risk. Specifically, government risk refers only to interactions with government, but not the following elements of country risk:

  • crime and property security
  • currency risk
  • different cultural norms around business ethics
  • monopolies or business conglomerate power within in-country markets
This article was sourced from Creative Commons Attribution-ShareAlike License; additional terms may apply. World Heritage Encyclopedia content is assembled from numerous content providers, Open Access Publishing, and in compliance with The Fair Access to Science and Technology Research Act (FASTR), Wikimedia Foundation, Inc., Public Library of Science, The Encyclopedia of Life, Open Book Publishers (OBP), PubMed, U.S. National Library of Medicine, National Center for Biotechnology Information, U.S. National Library of Medicine, National Institutes of Health (NIH), U.S. Department of Health & Human Services, and, which sources content from all federal, state, local, tribal, and territorial government publication portals (.gov, .mil, .edu). Funding for and content contributors is made possible from the U.S. Congress, E-Government Act of 2002.
Crowd sourced content that is contributed to World Heritage Encyclopedia is peer reviewed and edited by our editorial staff to ensure quality scholarly research articles.
By using this site, you agree to the Terms of Use and Privacy Policy. World Heritage Encyclopedia™ is a registered trademark of the World Public Library Association, a non-profit organization.

Copyright © World Library Foundation. All rights reserved. eBooks from Hawaii eBook Library are sponsored by the World Library Foundation,
a 501c(4) Member's Support Non-Profit Organization, and is NOT affiliated with any governmental agency or department.