The risk associated with wars, terrorist acts, and tensions between states affect the normal and peaceful course of international relations. Geopolitical risk captures both the risk that these events materialize and the new risks associated with an escalation of existing events. Adapted from: https://www.federalreserve.gov/econres/ifdp/files/ifdp1222.pdf.
Resources for geopolitical risk in third party risk management can be found here: https://sharedassessments.org/geopolitical-risk/.