Breach of contract risk: The breach of a contractual obligation by a foreign government or state-owned entity and the ensuing refusal by the government or entity to honour an arbitral award in your favour.
Non-payment by a sovereign obligor: The refusal or inability of a foreign government to make scheduled loan payments or to make a payment under a guarantee.
Expropriation risk (including gradual or creeping expropriation): An act or a series of acts taken by a foreign government to seize, confiscate or otherwise expropriate your assets or investments, or foreign government acts that have had the effect of expropriation.
Political violence risk: Terrorism or other forms of political turmoil aimed at influencing the policies of the host country government that damage assets or force you to shut down foreign operations.
Conversion risk: The inability to convert the local currency of a foreign country into hard currency.
Transfer risk: The inability to transfer hard currency outside a foreign country.
Repossession risk: Measures that a foreign government may take that prevent you from repossessing or re-exporting physical assets brought into the country (e.g. machinery, equipment, rolling stock, an aircraft, etc.).