Risk Management Includes Political Risk
My colleague, Brian Kalish, has a typically thoughtful article in the November issue of Risk. “One of the new risks associated with our recent financial crises is political risk,” writes Kalish, AFP’s Director, Finance Practice Lead. “While political risk has always existed, the focus has tended to be at the macro-level and outside of the United States. Starting in the summer of 2007, there has been a greater awareness of political risk at the micro-level and inside the boundaries of the United States.”
Political risk now means more than a coup in a far-off nation, Kalish writes. For corporate treasury, it means the uncertainty brought about by the federal government’s unprecedented intervention into the U.S. economy — especially the financial world. That political risk will continue into 2010 as President Obama’s financial regulatory overhaul proposal winds through Congress. Kalish has the final word: “Going forward, companies will have to incorporate the higher cost associated with a higher degree of political uncertainty.”
You can access Risk here.
Tags: Brian Kalish, financial regulatory overhaul, political risk, Risk Management
