The ESG Initiative at the Wharton School
Why You Deed a Strategic Approach to Political Risk
Political risk is not new, but its context today is different and the risks more sustained and pervasive. The complexity of the geopolitical environment (what we call the ‘transformative age’ in geopolitics), challenges to globalization, and shifting “rules of the game” around global economic integration and expansion present significant systemic risks that are challenging for global companies to navigate.
CEOs and senior executives often struggle for strategic insight into how to manage this increasingly disrupted geopolitical system. Typical political risk analysis tends to be long on information about events but short on strategic advice. And when advice is offered, it’s often reactive and addresses individual risk, rather than proactively seeking to influence events.