What is ‘Political Risk’? How do the companies assess and manage them? Discuss. 

Political risk refers to the potential for financial, operational, or reputational losses that arise due to political decisions or events in a country where a company operates. These risks can emerge from changes in government policies, instability, political violence, expropriation of assets, currency controls, and regulatory uncertainty. For multinational corporations, political risk is a critical consideration as they expand their operations globally. In this essay, we will explore the concept of political risk, its various forms, and how companies assess and manage these risks to safeguard their interests.

1. Understanding Political Risk

Political risk can manifest in several forms, each having a unique impact on businesses:

1.1. Regulatory Risk: Changes in government policies, regulations, or laws can significantly affect a company's operations, market access, and profitability. For example, sudden alterations in tax laws or industry-specific regulations may impact a company's bottom ______ ________ _________ ____ ____.
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