Using this definition fron Deresky, kindly DEFINE $[$using definition from Deresky $(2021)]$ and DESCRIBE the global risks that surround the global political environment. List $3$ risks. In your discussion, provide EXAMPLES attached to the chosen risks.$-$ Political Risk

Clearly, as evidenced by the $2011$ Arab Spring uprisings, the $2014$ annexation of the Crimean Peninsula by the Russian Federation, and the $2019$ political unrest in Venezuela, major political changes can affect the business environment and risk level almost overnight. As far as political risk is concerned, a survey$$based on $211$ countries and territories$$by Aon Risk Solutions $($the firm discussed earlier$)$ found that the political risk level is rising in more countries than it is declining. That conclusion was based on the level of exposure to factors such as currency inconvertibility and transfer; strikes, riots, and civil commotion; war; sovereign nonpayment; political interference; supply chain interruption; and legal and regulatory risk$\mathrm{.}101$ It is clear from the past that firms operating in some countries are exposed to political risks that can drastically affect them with little warning, as illustrated by the opening profile.

The managers of a global firm need to investigate the political risks to which they expose their company in certain countries$$and the implications of those risks for the economic success of the firm. Political risks are any governmental action or politically motivated event that could adversely affect the long$-$run profitability or value of a firm. Like many countries in the world, certain countries in the Middle East have faced periods of instability in recent decades. As such, political risk heavily influences business decisions in unstable countries.