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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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 ...
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...
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...
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...
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...
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...
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...
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...
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....