1. Risk management.
Any political tension occurring in a country - or between two or more countries - which could lead to riots, secession or wars, to the point where it affects the physical security of an organisation's counterparties or personnel, or the permanent disruption of the movement of goods or services.
Geopolitical risk overlaps with political risk.
Treasury's geopolitical concerns
- "There's been much to concern the treasury professional worldwide over the past few years.
- The aftermath of the financial crisis, the constant drumbeat of regulation and all manner of geopolitical surprises are just a handful of the core concerns."
- The Treasurer magazine, August 2018, p11 - Peter Matza, speakers chair, Association of Corporate Treasurers.
More broadly, the risks discussed above, together with the risk of omissions or other inaction resulting from failures of global political or other transnational efforts.
For example, climate change inaction.