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What is a political risk?

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It seems that every day a new type of risk emerges. Today I read about a type of risk called a "political risk". What is it exactly? Do political risks (in project management) have anything to do with the company/office politics, or are they related to the politics of the country?
asked 5 years ago by anonymous

1 Answer

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In project management, a political risk is a risk that affects the project and that is related to the general politics of the country. For example, let's say you're managing a project supported by a political party that is in power. An example of a political risk is the following: "What if during the next election the other political party holds power, and cuts the funding of your project?"

Another example of a political risk is the following:

Let's say you're managing a construction project next to a not-so-friendly country where most of your materials (such as concrete) come from. If tensions increase between the two countries, then your country (or the other country) may close the borders, and you won't be able to get your necessary materials anymore. That's a political risk...
answered 5 years ago by anonymous

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