Politics can increase Pepsi’s risk factors, because governments can quickly change business rules that negatively affect Pepsi’s business… … "Political Risk (Pepsi)" has a significant impact, so an analyst should put more weight into it. "Political Risk (Pepsi)" will have a long-term negative impact on this entity, which subtracts from the entity's value. "Political Risk (Pepsi)" is a difficult qualitative factor to overcome, so the investment will have to spend a lot of time trying to overcome this issue.