what is jurisdiction risk 
jurisdiction risk refers to the risks that can arise when operating in a foreign country or jurisdiction these risks can arise simply by doing business or else by lending or borrowing money in another country risks could also stem from legal regulatory or political factors that exist in different countries or regions in recent times jurisdiction risk has focused increasingly on banks and financial institutions that are exposed to the volatility that some of the countries where they operate may be high risk areas for money laundering and terrorism financing 1