I'm confused with the working of this question. I feel like there is more than one answer.

I'm confused with the working of this question. I feel like there is more than one answer. Would really appreciate any help. Thx!

Allmax is concerned that its subsidiary in Venezuela could be expropriated (seized) by the host government without compensation within the next few years. The type of risk Allmax faces with its Venezuelan subsidiary is termed ______ risk.