Macro Risk Management
Macro risk describes political risks that affect all businesses that operate in a foreign country. Examples of macro risks include the possibilities that a nation could raise taxes, fall into civil war or devalue its currency. Business managers must be well-informed about a country's laws and political situation to manage macro risk. For instance, managers might avoid investing in a certain country if they think it is likely the country will pass unfavorable legislation. Diversifying a business by expanding operations into several foreign countries is a way to mitigate risk.