Tuesday, October 16, 2012

A guest article on political risk


Political Risk: What is it and Why You Should Learn More NOW
For the most part, everyone's familiar with the basic concept of risk management. Basically, before any big decision is made or action is taken, one considers the possible problems or uncertainties that could arise in a specific situation or scenario and therefore plans accordingly to avoid any negative outcomes. But when someone says political risk do you know to what they are referring? The truth is, many people don't.
Basically, in a nutshell, it is just like normal risk in that issues and problems can arise that will create problems for businesses, investors and consumers, but it differs in that these issues are caused and created due to political decisions and changes. This can include policies that control things such as trade, investment and foreign affairs. Although it may be hard to grasp, high political risk is not necessarily a bad thing for a country, as it shows signs of change and openness. In highly authoritarian, oppressive countries, there is usually very little risk because the leading regimes fear change. Enjoying the hold they have over the people, they exert their control in such a way that things will be forced to stay generally stagnant and unchanged from when they entered office.
However, that being said, political risk is still something that should be considered when making business decisions. Neglecting to factor it in can result in major losses for those involved.
2012: A Year of Changes
This year is expected to be especially trying as numerous countries across the globe are set to have, or have already had, potentially game-changing elections, meaning that many important nations will be in a state of adjustment. This might not seem like a huge issue to some, but the fact of the matter is that global players such as Egypt, France, Venezuela and India have all had significant elections this year, meaning that the governments there are in a state of flux. Not to be overlooked or discounted, Turkey and the U.S. are also slated to hold elections. This causes many global issues to be put on the backburner in the interest of more local, country-specific problems that need immediate political attention.
The global market and economy will be left in cruise control for a bit as everyone adjusts to their new political realities. The effects may not be felt instantly, but surely over the next few months and even years the world should be feeling the ripple effect as countries reassess not only their domestic situations, but also how they fit in to the grand scheme of things. An article published at the beginning of the explore explores some of the countries of concern.
Courses on the Subject
In an effort to keep the next generation of leaders well-informed and prepared for what awaits them, many schools and organizations are now offering courses on the subject. For instance, there's this event which explores political risk from the point of view of global bankers, investors, risk consultants and even lawyers.
Similarly, this 3-day course explored topics such as political risk insurance, debt, and case studies in the subject. So, if you're interested in learning more, see if an institution or organization near you is offering something similar.
There's lots to learn on this expansive subject, so don't waste time. Familiarize yourself with it NOW. 
Melanie Foster writes about world education, online education technologies, and general writing advice for onlinephdprograms.com.  Melanie is interested in the way that online technologies, specifically mobile technologies, will shape the next generation of learners. Feel free to send Melanie any comments or questions you might have!






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