Political Risk Analysis

From Open Risk Manual

Definition

Political Risk Analysis is the Risk Analysis of Political Risk. Due to the complexity and context depend nature of the risk, it is largely a qualitative analysis, potentially leading to an expert based model / scorecard, for example a Qualitative Rating Score.

Components

The analysis may involves some or all of the following elements:

  • Review of Governmental organization (representativeness, legitimacy, popular support)
  • Economic strengths / weaknesses of the country and its main productive / business sectors
  • Historical analysis of the political trajectory of the country (and similar countries)
  • Geopolitical Risk analysis (relations with other countries)
  • Scenario Analysis of possible future developments.

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