Summary |
Every organization is affected by the decisions of government and quasigovernmental organizations at local, national and international levels, and there are many indications that this trend is on the increase. These decisions may be favourable to the organization and result in privileges or some kind of special treatment, but more often they are unfavourable in that they restrict the organisation’s activities.
This pamphlet first considers the nature of risk in the business environment and defines the underlying concept of political risk management. It then analyses how companies expose themselves to political risks, and why this is related to the growing emphasis on corporate social responsibility. In this connection it is essential to explore and clarify an organisation’s own objectives, since this is a necessary prerequisite for indentifying the special factors that have to be incorporated into any coherent and consistent decision-taking strategy.
The pamphlet continues with a discussion of the reasons for increased government involvement and how it operates. This is followed by an analysis of those factors of special importance internationally and includes consideration of the problems of developing a meaningful way of determining the political risks of a country.
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