Politics
The word comes from the same Greek word from which the title of Aristotle's book "Politics" (Πολιτικά, "Polis") also derives; "polis" means "affairs of the cities". The book title was rendered in Early Modern English in the mid-15th century as "Polettiques"; it became "politics" in Modern English. The singular "politic" first attested in English 1430 and comes from Middle French "politique", in turn from Latin "politicus", which is the Latinization of the Greek πολιτικός ("politikos"), meaning amongst others "of, for, or relating to citizens", "civil", "civic", "belonging to the state", in turn from πολίτης ("polites"), "citizen" and that from πόλις ("polis"), "city".
Political risk
The term political risk has had many different meanings over time. Broadly speaking, however, political risk refers to the complications businesses and governments may face as a result of what are commonly referred to as political decisions—or "any political change that alters the expected outcome and value of a given economic action by changing the probability of achieving business objectives". Political risk faced by firms can be defined as "the risk of a strategic, financial, or personnel loss for a firm because of such nonmarket factors as macroeconomic and social policies (fiscal, monetary, trade, investment, industrial, income, labour, and developmental), or events related to political instability (terrorism, riots, coups, civil war, and insurrection)." Portfolio investors may face similar financial losses. Moreover, governments may face complications in their ability to execute diplomatic, military or other initiatives as a result of political risk.