1st Edition

Measuring Political Risk Risks to Foreign Investment

By Charlotte H. Brink Copyright 2004

    Offering a fresh, transparent approach encompassing new material, this invigorating volume measures political risk - for instance the risk that foreign investment might face in any country. It also demonstrates how progress or regress made in good governance initiatives as conditionalities to aid can be assessed. Governments can monitor their own policy environment(s), and take remedial action if necessary. The methodology allows for measurement of previously un-quantified 'soft' factors that add to the risks foreign investors might face, demonstrating why these factors are of importance to both risk assertive and risk averse investors. Features include: - 103 contextualized, measurable risk factors and their 411 risk factor indicators. - Guidelines to using these factors in order to perform generic macro analyses, or micro, client/project/industry-specific analyses. - Explanation of the methodology with which to comprehensively measure the probability of risk occurring in any macro or micro investment climate.

    Contents: Introducing political risk; Thinking about political risk: a conceptualization; Thoughts and examples on modelling political risk analysis; Political risk factors and their indicators; Presenting a model for political risk analysis; Managing political risk; Summary and concluding remarks; Bibliography; Index.

    Biography

    Charlotte H. Brink teaches Political Risk Analysis at the University of Stellenbosch, South Africa.

    ’In this timely and well researched book Charlotte Brink makes an outstanding contribution to the field of Political Risk Analysis. In an age of increasing global tension and instability she provides important insights in the theory and practice of measuring political risk. Her clear, concise and adaptable measuring model will be an invaluable tool for analysts, consultants and companies in analysing and managing political risk in uncertain environments. Thereby, providing a significant edge for foreign investors.’ Professor Hennie Kotzé, University of Stellenbosch, South Africa 'Overall, this carefully written book is an important contribution to political risk analysis. In particular, the meticulous presentation of different risk factors and the explanation of the aggregation methodology provide a significant improvement of previous risk models.' Transnational Corporations