Politics and business may at first glance seem like oil and water, answering to different constituencies and focusing on different goals. But in an increasingly non-polar world, understanding what motivates governments is more vital than ever to business outcomes.
Spurred by globalisation, companies are taking on greater international exposure than ever before. Conflict in the Middle East, terrorism, and pandemic diseases—to name but three issues—are perennial threats to the security and continuity of global business operations. At the same time, government intervention in national economies is on the rise, and incidences of business setbacks—contract renegotiation or cancellation by a host country, politically driven increases in taxation, or impromptu country exits after significant investment—are surging.
Also worrisome is the growing gap between corporations’ acceptance of political risk for economic rewards and their ability to adequately manage that risk in an effective manner.
At PwC and Eurasia Group, know that if political risk can be anticipated, it can measured—and if it can be measured it can be managed. This principle lies at the heart of our political risk practice, and underscores its value to global organisations, now more than ever.
Here some real-world examples of political risk situations:
Using our deep sector knowledge and comprehensive political risk data and tools, PwC and Eurasia Group can help you:
The interrelation and interdependency of global markets continues to increase. Firms are taking on greater international exposures than ever before as they seek new markets and new sources of material, labor and capital. At the same time, the events of the past few years show us that the world is becoming a more volatile place. That volatility, which is driven by the decisions (and sometimes the shortcomings) of global leaders, creates both opportunities and risks. By increasing their ability to anticipate these decisions, firms are better able to capture global opportunities and mitigate downside risks.
To help our clients address these challenges, PwC has formed an alliance with the Eurasia Group, the world’s leading global political risk consulting firm. Eurasia Group brings in-depth country knowledge and contacts, a long term view of political risk as a predictor of economic risk and a pragmatic approach. PwC brings business process understanding in and across functions and industries, enterprise risk management framework design and implementation capabilities, and risk mitigation experience with a focus on overseas investments. We believe this combination of talents will enable our clients to drive higher quality returns to the bottom line.