Political Risk Management.

This chapter attempts to provide insights on the wider concept of political risk management, how coherence is achieved, and specific options and measures. It examines the concept of political risk management; the linkage between intelligence and action; the evaluation of political risk management performance and the concept of a political risk management strategy. Before addressing the nuts and bolts of political risk management, it is useful to have a top-level understanding of what this function is trying to achieve. There are two useful notions: resilience; and political risk management as an enabler of global strategy. The chapter discusses four broad categories of political risk management measures: portfolio management; security; relationship-building; and risk transfer. It also examines the structures that a company build to guide and implement political risk management at the global and operational levels. The chapter considers the leadership function and explores how political risk management initiatives are structured.