Political Risk Assessment
Stay One Step Ahead of Political Risks
We live in a world of socio-political turbulence and uncertainties, where businesses find it increasingly difficult to take decisions. The International encyclopedia of political science describes political risk as a type of risk faced by investors, corporations and governments that political decisions, events or conditions will significantly affect the profitability of a business actor or the expected value of a given economic action. Political risk can be understood and managed with reasoned foresight and investment.
Meanings keep changing over time. A more recent definition looks at political risk as "the risk of a strategic, financial, or personnel loss for a firm because of such nonmarket factors as macroeconomic and social policies (fiscal, monetary, trade, investment, industrial, income, labour, and developmental), or events related to political instability (terrorism, riots, coups, civil war, and insurrection).
That's where seemingly synonymous terms come into play: risk management, risk assessment and risk analysis. At a simplistic level, a risk assessment is the information, a risk analysis is the processing and risk management is the plan. Risk assessment pinpoints and then breaks down threats into identifiable categories and defines the potential impact of each risk; risk analysis measures the risks and their associated impact; risk management is the over-arching process of assessing, analysing, prioritising, and making a strategy to mitigate threats to an organisation’s assets and earnings.
As Wikipedia puts it: "Understanding risk partly as probability and partly as impact provides insight into political risk. For a business, the implication for political risk is that there is a measure of likelihood that political events may complicate its pursuit of earnings through direct impacts (such as taxes or fees) or indirect impacts (such as opportunity cost forgone). As a result, political risk is similar to an expected value such that the likelihood of a political event occurring may reduce the desirability of that investment by reducing its anticipated returns."
That is where INSCRIPTIONS steps in. We help you identify and categorise risks, and provide an outline for potential consequences.
What We Provide
Among others, what you can expect from us include country assessments (for Indian companies), key political drivers, risk trigger points, comprehensive strategic /tactical scenarios. We provide advisories for specific states, or the country as a whole.
No Armchair Theories
We don't Google up and copy-paste a report that you could have well done yourself. We come from a journalistic background, and we fall back on networks that we have assiduously built over decades. We use base reports from journalists with their feet on the ground, and integrity and credibility as watchwords. We rely on hard facts, and keep little room for opinionated assessments.