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Politics can increase Larsen and Toubro’s risk factors, because governments can quickly change business rules that negatively affect Larsen and Toubro’s business… … "Political Risk (Larsen and Toubro)" has a significant impact, so an analyst should put more weight into it. "Political Risk (Larsen and Toubro)" will have a long-term negative impact on this entity, which subtracts from the entity's value. This statements will have a short-term negative impact on this entity, which subtracts from its value. This qualitative factor will lead to an increase in costs. This statement will lead to a decrease in profits. "Political Risk (Larsen and Toubro)" is an easy qualitative factor to overcome, so the investment will not have to spend much time trying to overcome this issue.