Micro Risk

AAA

DEFINITION of '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 EXPLAINS 'Micro Risk'

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
  1. Unsystematic Risk

    Company or industry specific risk that is inherent in each investment. ...
  2. Systematic Risk

    The risk inherent to the entire market or entire market segment. ...
  3. Country Risk

    A collection of risks associated with investing in a foreign ...
  4. Political Risk

    The risk that an investment's returns could suffer as a result ...
  5. Risk

    The chance that an investment's actual return will be different ...
  6. Macro Risk

    A type of political risk in which political actions in a host ...
Related Articles
  1. No results found.
comments powered by Disqus
Hot Definitions
  1. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  3. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  4. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  5. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  6. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
Trading Center