It seems someone is confusing geopolitical risk with sovereign risk.
Geopolitical Risk
Geopolitical risk refers to the potential impact of political and geopolitical events on various aspects of business and investment in a specific region or globally.
It includes events such as wars, political instability, terrorism, trade tensions, and diplomatic conflicts.
Geopolitical risk can affect economies, financial markets, and individual businesses, leading to uncertainty and potential disruptions.
Sovereign Risk
Sovereign risk, also known as country risk, is the risk associated with a government's ability and willingness to meet its financial obligations.
Factors contributing to sovereign risk include government debt levels, fiscal policies, political stability, and the overall economic health of a country.
Sovereign risk can affect the creditworthiness of a country, influencing interest rates on government bonds, currency stability, and the willingness of investors to lend money to the government.
