Planning, Assessing, Analyzing and Monitoring Country and Political Risk During the PMI Risk Management Process
Uncertainty—which encompasses the impact of risk and its probability—is the prominent, classic question in project risk management; this concern gets even more severe when projects and business are conducted in a new environment, new frontiers, new legal and regulatory frameworks, and in new cultures.
“The biggest risk is not taking any risk... In a world that is changing really quickly, the only strategy that is guaranteed to fail is not taking risks.” Mark Zuckerberg
Pursuing overseas or cross-borders business requires an understanding of the country and political risk—it is, indisputably, a key consideration. Political scientists and scholars are not very divided on the definition of political risk—as political events that can turn the business objectives and strategies in an undesirable direction. Investments—whether in a domicile business or a non-operating shareholding—should consider a broader approach of political risk and diverse political systems. Market intelligence or intuitive knowledge on political factors might be inaccurate and risky.
Is it possible to expect a turbulent event on the horizon? And be better prepared?
A full country or political system evaluation is beyond business capability and is even hard for specialized political
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