Micro Risk
A type of political risk that refers to political actions in a host country that can adversely affect selected foreign operations. Micro risk can come about from events that may or may not be in the reigning government's control. Investopedia Says:
For example, diplomatic tension with Country A has caused the citizens of Country B to vandalize all Country A based companies situated in Country B. In this example, only operations from Country A were faced with adverse situations. Operations from other countries were not affected. Related Terms:
Country Risk
Macro Risk
Political Risk
Risk
Systematic Risk
Unsystematic Risk |