Geopolitical Risk

Geopolitical Risk refers to the impact of political events or changes in global political landscapes on trade and investment. Significant instances include international conflicts, trade wars, and sanctions.

International conflicts like the Russian-Ukrainian conflict affect global energy markets by disrupting oil and gas supplies. Trade wars between the U.S. and China influence tariffs on goods, impacting global supply chains. Sanctions such as those imposed on Iran restrict financial transactions, affecting international business operations.