This dissertation explores the topic of risk, in different manifestations, and its impact on economic systems. It is comprised of three chapters: i) Valuation Responses to Random Changes in Perceived Risk: The Impact of Terrorism on the Defence Sector, ii) Worth its Weight in Gold: Is the EITI a Credible Signalling Mechanism to Investors? and iii) Investigating the Impact of Crime on Economic Activity. The aim of this dissertation is to analyse various manifestations of risk - terrorism, uncertainty, and crime - and how it affects the economy and financial markets. It demonstrates that while econometric methods allow us to parse out some interesting findings, contextualisation of results is key for understanding the dynamics of risk. Each paper presented here incorporates panel data econometric and risk models that aid in gaining more thorough understanding of how social and political contexts interact to mitigate or augment the impact of risk on the economy. This dissertation shows that risk mitigation approaches are heavily influenced by intervening factors, thus generalised approaches do not provide sufficient foundation for risk mitigation policies. Essentially, policy responses to risk should rely on contextual factors and political and economic dynamics that are at play in a particular environment.