Confiscation risk refers to the potential threat that assets held in a foreign country could be seized, expropriated, or nationalized by the host country's government. This risk also includes the possibility of interference with a non-resident owner's control over these assets.
Country risk refers to the potential financial losses that can arise when conducting transactions or holding assets in a foreign country due to political or economic instability.
The Export-Import Bank of the United States (EXIM) is a government agency established by Congress in 1934 to encourage U.S. trade with foreign countries through various financing programs and risk mitigation services.
Hot money refers to capital that moves rapidly between financial markets to capitalize on interest rate differences or to avoid risks such as political intervention. Additionally, it may refer to dishonestly acquired money that needs to remain untraceable.
Measurable possibility of losing or not gaining value. Risk is differentiated from uncertainty, which is not measurable. Various types of risk include actuarial risk, exchange risk, inflation risk, interest rate risk, inventory risk, liquidity risk, political risk, repayment (credit) risk, risk of principal, systemic risk, underwriting risk, and unsystemic risk.
