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Global Risk Affairs | Webmagazine for Leaders Assessing Global Topics
Global Risk Affairs provides information on global issues with a focus on inter-connected risks and future scenarios relevant to society, government and business. Topics covered range from challenges facing climate change, energy security, resources supply, fresh water scarcity, food security, health risks, demographic changes, economic and financial regulation, socio-economic development, governmental issues and political risks, to transnational terrorism, organized crime and armed conflict.
The dramatic and still undecided processes of regime change in the Arab world highlight the fundamental relevance of political risk for doing business in countries that were wrongfully regarded as stable, until the outbreak of civil unrest. Even though political violence in host countries is the most vivid case of political risk, there are other categories, such as regulatory change, that actually preoccupy the political risk perception of investors. In general, political risk analysis represents a research profession that investigates the potential sources and factors of non-commercial disruptions of foreign investments. This article, which is divided into two parts, outlines the methodological and intellectual requirements of political risk analysis. The first part argues that enhanced political risk analysis should adopt the concept of political due diligence. The second part, entitled The Political Risk Analyst, to be published shortly, will consider what makes a good political risk analyst, and detail the modules for professional training.
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