Implications of recent uprisings for the political risk field
Any thoughts on what this string of uprisings will do for the field? Do you think political risk analysis will start to get more popular as a result of the effect of political unrest in these countries?
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Am a Risk Analyst as well working in a financial institution for which we share scope in the profession. Am however keen on this key but sometimes abandoned area. I have done several readings by various political analysts but i tend to relate more with one given by Howell, 2001 as ' the Possibility that political decisions or political or social events in a country will affect the business climate in such a way that investors will lose money or not make as much money as they expected when the investment was made
'It's a Sub component of country risk which incorporates two other sub categories including economic and financial risk'
I am a financial risk manager and former chief risk officer of regional banks. I notice that many talk about regulatory or political risk, and I am interested in anyone who would care to share a definition of political risk. I will start by defining political risk as the risk the enforcement of existing rules and regulations changes such that existing business decisions, strategies, and contracts no longer meet business objectives. Based on my definition, the laws and regulations do not have to change, as I suspect actual legislation and regulatory change is a lagging indicator.
I would be interested in hearing from anyone who has studied or can cite good references for a definition of regulatory cycle.