Are International Companies Conducting Applicable Political Risk Analysis?

Abstract

For many western business professionals the recent uprising in the Middle East was just a blow and unpredictable. On the other hand; during the last five years several Arab scholars and business experts were expecting such uprising and in such scale. Search engines are full of such analysis. So, was it possible for those living out of region to expect a turbulent event on the horizon? And be better prepared?

Pursuing overseas or cross borders businesses require understanding of the political risk, it is indisputably a key consideration. Political scientists and scholars are not very much divided around the definition of the political risk; as the political events that can turn the business objectives and strategies into an undesirable direction. Investments whether it is a domicile business or a non-operating shareholding should consider a broader approach of political risk and diverse political systems. Market intelligence or intuitive knowledge on political factors might be inaccurate and risky.

Full country or political system evaluation is beyond business capacity and rather a political assignment, and here lies the dilemma for business to conduct most focused, targeted, and adequate assessments that meets necessary requirements for a quality business decisions and enables swift responses.

Keywords: Political, Risk, International, Business, Evaluation, Assessment