Micro Risk


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.


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.

  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. Macro Risk

    A type of political risk in which political actions in a host ...
  4. Risk

    The chance that an investment's actual return will be different ...
  5. Country Risk

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

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