Geopolitical Risk encompasses threats from state actions, international tensions, territorial disputes, political instability, and changing government policies that disrupt markets, supply chains, or investments. Companies face revenue loss, asset seizure, supply disruption, and market access restrictions from events like trade wars, sanctions, or military conflicts. Russia's invasion of Ukraine in 2022 created massive geopolitical risk through sanctions, energy supply disruption, and market volatility affecting global companies. Assessment requires monitoring political developments, scenario planning for conflict escalation, diversifying geographic exposure, and maintaining flexibility to pivot operations. Multinational corporations increasingly employ dedicated geopolitical analysts and integrate political risk into strategic planning.