This document discusses political risks that businesses face when operating internationally. It outlines different types of political risks including risks from the general environment, industry-specific risks, and firm-specific risks. It also discusses factors like political stability, corruption, and conflicts that influence political risk. The document uses maps and data to illustrate levels of political risk and economic development across different markets. It specifically examines risks in post-Soviet states, noting that political risks often stem from inconsistencies between formal and informal institutions, as well as issues of state capture. However, the document concludes that these political risks can be managed if business decision-makers are aware and take steps to mitigate, transfer, or avoid certain risks.