How to manage political risk and why it is an important aspect of ERM
- Published: Monday, 15 August 2016 07:20
By understanding the foundation of the organization’s business, the risk tolerance acceptable to leadership and key details of countries under consideration, a risk manager can start to gain solid footing to tackle the complicated world of political risk , according to a new RIMS Executive Report Decoding Political Risk Management.
Based on conversations with geopolitical risk management experts, the report provides a guide for risk professionals assessing their organizations’ political risk. The report defines political risk and explores top concerns for organizations as they expand globally, the characteristics of these risks, mitigation strategies, as well as the state of the political risk insurance market.
“Opportunities for organizations to expand globally have become more plausible and, often, too valuable to be overlooked,” said RIMS President Julie Pemberton. “Understanding political risk and being able to contribute to the organization’s ability to navigate such obstacles is a priority for today’s risk professional. This RIMS report offers practitioners a look at some of the strategies world-leading risk management experts have implemented or have advised their clients to consider.”RIMS Executive Report Decoding Political Risk Management is available in RIMS Risk Knowledge library at www.RIMS.org/RiskKnowledge