Political Risk: Definition and additional resources from BNET
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BNET Business Dictionary

Business Definition for: Political Risk

  • the potential negative impact on a government of a business or economic decision

Wiktionary Definition for: Political Risk

  • any financial risk that stems from the possibility of a nation changing its policies

Additional Resources

Mapping The New Political Risks
Political risk is the threat that social, political or economic factors in a foreign country may affect the feasibility and profitability of an organization's global operations. The map of political risk has taken on a changing form over the past twenty years. Along with new breeds of risk comes intensified...
Tags: Risk, Security, Strategy, Management
White papers 2003-03-01
Political Risk Insurance (PRI) Market Update
Introducing ethnic, political, religious and social unrest into an already volatile mix exposes business to potentially catastrophic unanticipated losses that could not have reasonably been predicted in any business plan. Political, economic, financial and military instability in many areas of the world can give rise to political risk losses that...
Tags: Article, Financial, Aon Corp., Insurance, Balance Sheets, Financial Planning, Financial Accounting, Financial Statements, Finance, Business Operations, Corporate Insurance
White papers 2003-01-01
Political Risk Management: A Strategic Perspective
Sophisticated managers address political risk by employing tailored risk mitigation strategies that reflect the specific factors affecting a firm's risk profile. Insurers may therefore determine the proper scope and price more accurately and efficiently by assessing the fitness of a given political risk mitigation strategy. This paper provides a simple...
Tags: University Of Pennsylvania, Risk Management, Framework, Government, Insurance, Financial Planning, Strategy, Vertical Industries, Financial Services, Business Operations, Corporate Insurance, Finance, Management, Enterprise Software, Software
White papers 2003-06-09
The Explanatory Power of Political Risk in Emerging Markets
There is substantial argument that political risk is an important and increasing influence on international portfolio allocation decisions. The purpose of this paper is to investigate the relation between political risk and stock returns within the context of emerging markets. The issue is examined using a framework that controls for...
Tags: Marketing, Financial Services, Marketing Research, Allocation, Emerging Market
White papers 2001-03-01
Aon Launches Political Risk Management Service; New Tool Performs Customized Financial Analysis of Political Risk Exposures
Business Editors
Tags: Aon Corp., financial, financial analysis, risk management, tool
Research articles 2001-08-07
How Managing Political Risk Improves Global Business Performance
Companies doing business internationally are grappling with political issues that sometimes surprise even the most experienced. A study by PricewaterhouseCoopers and Eurasia Group shows that despite current efforts, a high percentage of multinational companies believe they are not doing all they could to manage political risk effectively. PricewaterhouseCoopers and Eurasia...
Tags: Performance Management, Investment, Human Resources, Workforce Management, Finance, PricewaterhouseCoopers Consulting, Performance
White papers 2006-05-11
Political Risk
Forecasting how the political risk map will change in future is difficult because of the unpredictability of world events. However, as is already apparent from the developments outlined above in Venezuela and Bolivia, energy is certain to become a greater focus of attention in this context. With global oil and...
Tags: Aon Corp., Business Structures, Sales Force Management, Financial Accounting, Finance, Sales
White papers 2006-01-01
Geopolitics and the Global Corporation
In an economy filled with both promise and threat, business executives must draw a new map of the world. This paper induces that an important component of geopolitical risk assessment should be an evaluation of the corporate role itself in either increasing or mitigating risks. It sates that knowledge of...
Tags: Booz Allen Hamilton Inc., Strategy, Tools & Techniques, Security, Management
White papers 2003-01-01
Expert Details 10 Steps To Manage Political Risk In Export "Hot Spots"
With more U.S. companies exporting to potentially volatile overseas markets every year, the need for export pros to learn the nuances of international political risk management has never been greater. This means determining three things: (1) what the exposures are; (2) what the risks are; and (3) how to access...
Tags: Exposure, Insurance, Government, Financial Planning, Financial Services, Strategy, Business Operations, Corporate Insurance, Finance, Management
White papers 2002-05-01
Operating in Developing Economies: Outsourcing, Trade, and Political Risk
Foreign risk is largely a product of local conviction, local social constructs, and local trends. As a result, foreign operational risk is fundamentally different from domestic operational risk: whereas liability for negligence is often one the leading operational risks in the United States. This article focuses on the methods of...
Tags: Outsourcing & Subcontracting, Supply Chain, Software, Enterprise Software, Outsourcing, Supply Chain Management (SCM), NeoIT, Business Operations, It Operations
White papers 2005-05-02
What Is a Promise From the Government Worth? Measuring and Assessing Political Risk in State and Personal Pension Schemes in the United Kingdom
There are three key types of political risk facing state and personal pension schemes: those induced by demographic, economic and pure political factors. Personal pensions are not immune from political risk either, although to date they have been less susceptible than the state scheme: the abolition of the tax credit...
Tags: U.K., City University, Benefits, Pension, Human Resources
White papers 2004-09-01
Aon Model Helps Determine Political-Risk Exposures.
Aon Corp. has launched a Political Risk Exposure Profile service that provides customized financial analysis of political threats to a company's global operations. Aon Corp. has launched a Political Risk Exposure Profile service that provides customized financial analysis of political threats to a ...
Tags: Aon Corp.
Research articles 2001-10-01
Magnitude of global political risk increases: Aon
The overall level of global political risk decreased in 2006, but the magnitude and complexity of risks facing companies around the world has increased, according to Aon's Political & Economic Risk Map.The overall level of global political risk decreased in 2006, but the magnitude and complexity of risks facing companies...
Tags: Aon Corp., risk
Research articles 2007-02-01
NEW POLITICAL RISK CAPACITY.
LONDON -- In a groundbreaking agreement, Lloyd's of London and the World Bank are cooperating to provide political risk insurance for trade transactions to Bosnia and Herzegovina. Lloyd's political risk insurers -- led by Wellington Underwriting LONDON -- In a groundbreaking...
Tags: insurance, World Bank
Research articles 1999-07-05
Economic, Financial And Political Risk In Portfolio And Direct Investment
There are various types of risks faced by countries across the world. One of them is ‘economic risk’, which is encountered by various nations. The success of countries depends on two factors viz. ‘low risk’ and ‘high risk.’ Low risk implies lower hurdle rates for investment, increased investment, and increased...
Tags: Investment, Type, Duke University, Financial, Financial Accounting, Finance
Presentations 2002-04-15
Citi Private Bank to Provide Its Clients Eurasia Group's "Global Political Risk Index" for Economic and Political Risk Analysis
NEW YORK -- Eurasia Group and Citi Private Bank announced today a relationship to offer Private Bank global clients exclusive access to Eurasia Group's unique political risk analysis. Through specialized client briefings, conferences and research products, Eurasia Group and Citi Private Bank intend to connect this research with the investment...
Tags: bank, Citigroup Inc., Eurasia Group
Research articles 2007-06-07
An Insurance Market Overview
The article asserts that the nation has won the war; winning the peace is the next challenge. For now, political risk markets offer somewhat limited coverage in the Mid East. In the absence of a prolonged conflict that explodes throughout the region and causes substantial losses as a result, underwriters...
Tags: Aon Corp., Article, Balance Sheets, Insurance, Financial Planning, Financial Statements, Financial Accounting, Finance, Business Operations, Corporate Insurance
White papers 2003-09-10
Political Risk: Run For Cover?
On 9/11, in a matter of minutes, CFOs and their risk managers came smack up against a risk that until then seemed minor: terrorism. The problem, however, was that the insurers that covered the exposure had a similar encounter. Responding to the attacks, and griping about the lack of a...
Tags: CFO Publishing Corp., Insurance Company, Risk Management, Terrorism, Homeland Security, Insurance, Financial Planning, Strategy, Security, Government, Business Operations, Corporate Insurance, Finance, Management
White papers 2002-01-22
Political risk insurers leery of Latin America; Actions of populist governments put underwriters on the defensive.(News)
Byline: ROBERTO CENICEROS Political risk underwriters are increasingly wary of the actions of populist governments with strong anti-U.S. sentiments in several South American nations and their appetite for certain political risks in the region has Byline: ROBERTO CENICEROS Political...
Tags: government, Occidental Petroleum Corp., oil company, risk, underwriter
Research articles 2006-05-29
Aon sees less political risk.(International News)(Brief article)
Byline: Sarah Veysey LONDON-There has been an overall decrease in political risk for the first time in three years, according to research from Aon Corp., with 17 of the 214 countries studied posing less of a risk in 2007 than they did in 2006....
Tags: Aon Corp., risk
Research articles 2007-01-22
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