Political Risks and Implications
Type of political risks that the firm may encounter in India and their implications
Government Stability: Rules and regulations created by one government for Banking and Financial Service sector can be changed by another government and this will affect the policies of the Banking and Financial Service companies like Company A. Therefore this company should prepared plans and policies according to the general requirement not specific.
Socioeconomic Conditions: If these conditions are not in line with the economic development may cause a problem to these Banking and Financial Service companies. There is need of generating sustainable policies according to the social economic requirement.
Investment Profile: This also affects the company as if there is not much investment in the companies by the stake holder and also these stake holders may cause a problem in the plans or policies if those are not as per the standards of their thinking.
Internal Conflict: The issues may be rise due to internal conflict which will definitely cause the problem of new business development, ensuring the existing plans and policies and also will create a market down to the company which will cause the financial problems.