![]() ![]() Political risk should be integrated into the ERM process so that companies have a full understanding of macro risks. In this, the first of a two-part series, three key recommendations will be discussed in brief from a corporate aspect.īusiness should not be as usual. Additionally, Jones & McCaffrey (2021) posit that political risk must be identified, assessed and managed on a proactive basis by leaders.Īs a result, I call on all the candidates for public office, board of director members, c-suite top executives, as well as my regulatory and risk management colleagues to play their part in managing risks responsibly. The EY Geostrategy in Practice 2021 survey found that over 90 percent of executives reported their companies were impacted by unexpected political risks in the recent past, due to policy changes and new regulations because of the COVID-19 health crisis. Locally, preemptive management of political risk is also critical as The Bahamas enters a general election scheduled for September 16, 2021. Forecasts and models may have been useful in the past, but recent events make their limitations abundantly clear. The political risk landscape has changed, as have all other risk categories, and businesses face a fragmented and different geopolitical environment. ![]() However, since then, COVID-19 has transitioned from a disruptor to a consistent and daily reality for the world. Managing political risk was the subject of a column I wrote over a year ago. ![]()
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