Which term refers to actions by individuals or countries that can impact a business's financial status?

The term that refers to actions by individuals or countries that can impact a business's financial status is political risk. This concept encompasses a range of factors such as government changes, policy shifts, regulation modifications, and geopolitical events that can affect business operations and profitability. For example, if a government decides to impose tariffs or change trade agreements, it directly influences the financial conditions of companies operating in or trading with that country. Political risk highlights how external political forces can create uncertainties that impact a company's investment and financial strategy.

In contrast, operational risks primarily focus on the internal processes and systems of a business that might fail, while financial risks relate to the potential for financial loss due to market fluctuations or mismanagement of financial resources. Market risk, on the other hand, pertains to the potential losses due to changes in market conditions, such as the overall economy or specific sector performance. These distinctions help clarify why political risk is the most relevant term in this context.