What Are Political Risks?

Political risks arise from government actions, instability, or geopolitical developments that can affect operations, investments, and markets. Key areas include:

• Government & Policy Changes: Shifts in leadership, policy, or regulation affecting industries or markets.

• Civil Unrest & Social Instability: Protests, strikes, or social unrest disrupting business operations.

• Geopolitical Tensions: Conflict, sanctions, trade wars, and international disputes impacting markets.

• Expropriation & Nationalisation: Government takeover or interference with private assets.

• Regulatory & Legal Changes: Sudden changes in laws, licensing, or compliance requirements.

Political risks can be sudden or gradual, local or global, and often have cascading effects on financial, operational, and reputational outcomes.

Why Political Risk Matters

For organisations, political risk can lead to:

• Disruption of operations and supply chains

• Regulatory non-compliance and legal exposure

• Financial losses due to asset seizure or market volatility

• Reputational damage with stakeholders and investors

For investors, political risk affects:

• Portfolio valuation and long-term returns

• Exposure to sanctions, expropriation, or market restrictions

• Investment strategy and capital allocation

For governments, understanding political risk supports:

• National security and economic stability

• Policy formulation and regulatory planning

• Strategic decision-making for foreign and domestic investment

Our Political Risk Services

We provide actionable intelligence and advisory to help clients navigate political risk:

Country & Regional Risk Analysis

Assess political stability, governance quality, and regulatory environments across countries and regions.

Scenario Planning & Forecasting

Model potential political events and their impact on operations, markets, and investments.

Monitoring & Early-Warning Systems

Track emerging political developments, protests, elections, and policy changes in real time.

Policy & Strategic Advisory

Provide actionable insights to support investment, operational, and policy decisions in volatile environments.

Due Diligence & Risk Mitigation

Evaluate partners, projects, and transactions for exposure to political risk, including regulatory and governance challenges.

Who We Support

• Multinational corporations and industrial enterprises

• Financial institutions and investors

• Governments, regulators, and public agencies

• Development organisations and multilateral institutions

• NGOs and civil society stakeholders

Why Our Approach Works

We combine:

• Independent, expert political analysis

• Data-driven insights across sectors and geographies

• Forward-looking scenario modelling and risk assessment

• Actionable recommendations for strategic and operational decisions

This approach helps clients anticipate political challenges, safeguard assets, and make informed, resilient decisions.

Navigate Political Risk With Confidence

Effective political risk management empowers organisations and governments to protect value, maintain operational continuity, and capitalise on opportunities in complex political environments.