Managing political risk in the age of terrorism

Abstract

Although political risk assessments have incorporated political violence and acts of terrorism into consideration of where the dangers lay for many decades, the acts of September 11, 2001 have shifted the focus of what is more impactful in international business and investment. Handling many of the risks to foreign investors remains a task for company managers but the nature of this new form of war has forced an interaction with government and international institutions that will be a new challenge for investors. What will remain is the necessity for managers of foreign enterprises to assess political risk along with economic and financial risk and then to determine which management tools are appropriate in dealing with specified risks. This essay discusses the relationship between risks and responses and delineates management methods that can be deployed in response.

Citation

Howell, L.D. (2002), "Managing political risk in the age of terrorism", Choi, J.J. and Powers, M.R. (Ed.) Global Risk Management: Financial, Operational, and Insurance Strategies (International Finance Review, Vol. 3), Emerald Group Publishing Limited, Leeds, pp. 131-153. https://doi.org/10.1016/S1569-3767(02)03012-1