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How To Manage Political Risk To Your Business
Learn how to understand and control political risk to your business
Many people are not interested in politics. However to be unconcerned about the geo-political risks facing both business and society as a whole is to play Russian Roulette with your future. Business political risk management should be at the forefront of most businesses even SMEs.
What is your political risk assessment? How will political risks impact on your business objectives? Don’t compound national governance failure with corporate governance failure. Consciously accepting political risks is perfectly sensible. Being unaware of your exposure to political risks may be foolhardy.
Most business leaders prefer to make decisions in a certain stable marketplace. Geopolitical unpredictability has perhaps created unprecedented uncertainty. The worst environment for making informed business decisions.
Most business problems can be fairly easily resolved over time if there is a stable platform upon which to grow. Illogical counter productive geopolitical decisions from unpredictable leaders at least complicates the world of business.
Geopolitical risks require a holistic approach due to their interconnected features and potential risk scenarios. Events that seemingly have little importance can quickly or over a long period of time create a severe negative impact on a business. They can also create new opportunities for more rapid business growth.
Managing political risks better
- Keep informed by political risk management experts
- Read and watch political risk analysis
- Learn from peers
How are your business objectives affected by political risks?
Keep informed about political risk news opinion and political risk analysis and embed your political risk knowledge into your risk assessment process. Make business plans with less uncertainty
- Learn more about the political risks that could affect your business objectives
- Reduce your political risks
- Take some guesswork out of the risk assessment process to make more informed decisions
Examine past present and future trends in global political risks with Political risk experts from around the world. Do not ignore nor underestimate the effect of political risk on your organisation directly and indirectly.
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20th June 2018 More Political Risks To Europe Than Economic Risks
Politics will bring the European Union EU down not lack of money. The EU is more vulnerable to the changing political map according to ECB policymaker Ewald Nowotny. He was reported as saying today
On the whole there are more risks to financial stability in Europe on the political side than on the economic side
- Germany is struggling as the power of the Angela Merkel wanes. She is losing her grip and more euro sceptic leaders are rising to the top.
- Italy has euro sceptic politicians at the top and could bring the EU down.
- Eastern European countries in the EU are not playing by the rules of the EU.
- France has been defying the EU rules on maximum deficit for years.
- Greece will never recover from the financial crisis unless Germany agrees to a Hair Cut on Greek debt and that is not going to happen.
What do you think? Have your say on the political crisis in the EU click here
27th February 2018 Geopolitical Risks Perhaps Biggest Threat To Businesses
The UK economy is probably stronger right now than many official figures reveal, despite the Brexit vote in June 2016. However the UK is not the only country to be under the cloak of geopolitical risks that threaten business survival and growth.
Italy and Germany are two developed countries in Europe that are waiting to see what their political future looks like. On the 4th March the result of Italys election will be known. It is likely that a weak minority government or a weak coalition government will be formed following the result. This will do little to positively shape Italy’s future and Italy may look to the result of Brexit for inspiration to separate form the EU or recoil from the example.
Germany is doing just fine with out ruling government for around half a year. Just shows you that we can survive fine without politicians! On the 4th March 2018 we’ll find out if Germany has finally sorted out its governmental issues or will Germany spend the next couple of months fighting another election we could see Germany lurching even further right politically.
Both Germany and Italy could precipitate the beginning of the end of the European Union EU for different reasons becoming disillusioned with the EU. Brexit could look like a molehill compared to the mountain the EU may yet have to climb.
USA economy has been turbocharged by take cuts low unemployment and a return of capital to the homeland. The wheels could fall-off if Trump is indicted. Alternatively he could develop into one of the best president’s America has had totally rejuvenating America! The latter should be the preferred option for the rest of the world as when America catches a cold.
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