We have come to the fifth part of this series on investment risks. You can read the preceding four parts here – Part 1, Part 2, Part 3 and Part 4. This section will discuss social risks and how these may impact a company, industry or country. Major social issues If major social issues are being debated by the government or in the media, investors should find out more about them as these issues may have a significant impact on their investment. One example is the persecution of minority races. Such behaviour may cause widespread social unrest, trigger potential violence, and dampen consumer demand (as people are afraid to venture out). Another social issue is the one-child policy in China which was recently scrapped. The country now allows couples to have up to three children due to a steep plunge in birth rates. Such a policy has long-term implications for companies selling products for babies, infants and young children as more couples may decide to...