The Role of Risk and Return Risk plays an important role in any business environment. Every international marketer continually assesses risk to maximize firm revenues. Risk may be viewed as a challenge or as a force to be avoided. If a relatively small risk is involved in a venture, the return on investment is likely to be minimal. The forces and expectations of risk and return seldom vary in any business venture.
Risks are normally geography or country-specific and tend to be well documented.
Risks are normally classified as political or economic. Political risks are those associated with government policies and practices. Political parties have platforms, which provide a basis of a candidate's perspectives of current issues. Examples could be the amount of protectionism directed towards imported goods and services or a government's desire for increased political stability. Special interest groups, organized labor groups, and others desiring influence and power influence political risks.