ABSTRACT
This chapter deals with the conceptualization of terms used throughout the remainder of this book and attempts to establish the theoretical base of political risk analysis. Although mention has been made of some of these terms, those explored in greater detail in this chapter all refer to the practice of political risk analysis as such, in an attempt to gain greater conceptual clarity on the definitive meaning of political risk and the analysis thereof. These terms include "country risk" and "political risk"; "problem solving theory" and "decision making theory"; the process of "analysis" as such, "model"1 and "modelling"; as well as the nuanced differences between "predicting", "forecasting", "forewarning" and "anticipating". This chapter will also attempt to further clarify and explain some methodological and theoretical problems encountered in political risk analysis, such as the levels of analysis problems briefly mentioned in the previous chapter.
