"Political Risk - Arbitrary or discriminatory actions, taken by home or host governments, political group, or individuals, that have an adverse impact on international trade or investment transactions."
(Source: IRMI's Political Risk Insurance Guide by Daniel Wagner)
Political Risk Perils include:
Confiscation, Expropriation, and Nationalization (acts by host government which expressly and permanently deprive your clients of: all or part of their share holding in the foreign enterprise; all or part of their fixed assets; their right to operate the foreign enterprise; or seizure of inventory and/or equipment.)
Selective Discrimination initiated by a host government in the form of a law, order, decree, regulation or import/export restriction selectively and discriminately imposed that prevents your client from exercising his/her fundamental right over the business.
Embargos or Import/Export License Cancellations.
Transfer Risk due to political/economic events preventing or delaying transfer of payments.