Political risk analysis inhabits the intersection between politics and business. Its focus is the study of how political decisions, events, or conditions might significantly affect the expected value of a given economic asset or action. Political risk can thus be defined as the probability of a strategic, financial, or personnel loss to a business entity caused by certain nonmarket factors. These include macroeconomic and social policies, in particular, fiscal, monetary, trade, investment, industrial, income, labour and developmental policies. They also include events deriving from political instability such as terrorism, riots, coups, civil wars, and insurrection. Political risk therefore also potentially affects government’s ability to execute diplomatic, military or other initiatives.