Three major types of political risks that might be present are operating risk,transfer risk,and ownership risk.

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Operating risk refers to the risk of losses or disruptions that a company may face due to changes in laws, policies, or regulations. Transfer risk refers to the risk of restrictions or limitations on the movement of funds, which may affect the ability of a company to pay its debts or repatriate its profits. Ownership risk refers to the risk of expropriation, nationalization, or confiscation of assets by the government or other political actors. All of these types of political risks can be present in international business operations.

Three Major Types of Political Risks That Might Be Present