What is Political Risk?

Political risk entails a business or individual’s exposure to threats, which can affect commercial operations, with attention to:

• political targeting, arising from protest movements;
• boycotts of goods or brands, organised either by governments or by non-governmental organisations;
• corruption, and anti-corruption campaigns;
• regulatory measures, such as arbitrary tax claims, or financial sanctions, aimed at a business;
• political efforts aimed at dispossession, such as forced sales of interests;
• nationalisation or direct takeover by a government-related entity;
• and damage to plant or personnel, owing to terrorism, civil unrest or conflict.

SVA’s professionals have deep knowledge of assessing and mitigating such political exposure. Moreover, conducting these appraisals has become increasingly important as political targeting of businesses has intensified in Asia and elsewhere.

How SVA Can Help

SVA can assist by carrying out practical assessments of risk facing a business. We assist clients: by providing political risk assessments, operational support and training in order to deal with threats pre-emptively; by helping management handle any targeting of a brand; by preparing for emergencies; and by effectively responding to crises, as they emerge.

Political Compliance Issue: “Our Asia based bank has been caught up in a row between US and PRC regulators. We are unclear as to how to proceed or as to the political imperatives behind these problems – SVA please help us!”

Risk Assessments & Strategic Advice

Political risk assessment includes the identification, assessment, and prioritisation of threats, combined with analysis of vulnerabilities.

Brand Targeting: “Our Asian retail business has become the target of a nationalist boycott, led by government-related NGOs. We fear for the safety of our staff and premises, and also for the standing of our brand in the market.”

We equip our clients to recognise and quantify key threats through the application of analytical processes. This process helps to develop an understanding of the nature and scale of potential threats.

Thereafter, SVA will carefully analyse a business’s activities, in order to develop a detailed understanding of its vulnerabilities, and will identify the critical areas most exposed to any prospective threat.

We will prepare a full report, setting out identified threats and vulnerabilities, and outlining how best to respond.

This review will form the basis for the implementation of risk mitigation measures, as well as the preparation of response and recovery plans, and related programmes.

Our Approach

SVA’s professionals have credible experience in assessing and mitigating a business’ political exposure. We assist clients: by providing information, operational support and training in order to deal with threats pre-emptively; by preparing for emergencies; and by effectively responding to crises, as they emerge.

Crisis Consulting Services

SVA can also respond to emergencies, and proffer support to employees, whether the requirement is safety, security or medical in nature. Such emergencies might include assisting in responses to political targeting, outbreaks of civil unrest, and violent conflict.

Our crisis management specialists will work with the senior leadership team, security, legal, human resources, communications, or other professionals, at corporate headquarters, or in the field, to provide a comprehensive range of appropriate, practical, and pragmatic crisis management solutions.

In this context, we work closely with some of the world’s largest insurers, and we are frequently the “designated” crisis and response consultants for large corporate interests.