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Management Risks - Coggle Diagram
Management Risks
Political Risk
Firm-specific
Directed at a particular company and are, by nature, discriminatory
Can reduce both, the likelihood and impact by:
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Country-specific
Are not directed at a firm, but rather are countrywide and may affect firm performance
Firms usually have little control over the impact of country-specific political risks on their operations
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Government risks
Arise from the actions of a governmental authority, wether that authority is used legally or not
Many government risks, particularly those that are firm-specific, contain ambiguous mixture of legal and ilegal elements
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Country risk
It is not only about politics, but also about economics, sociocultural dynamics and history
Must be given to scenarios, unexpected events, and short and long term trends.
In order for country risk analysts to stay ahead of the game, they must excel in being able to use the past and present to try to predict the future.
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Terrorism risk
Great deal of influence on some investment decisions, but very little on others
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