Political Risk Analysis

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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.