How the J Curve can help companies to understand and manage political risk

October 2006
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How the J Curve can help companies to understand and manage political risk

At a glance

Incorporating political risk assessment into the business decision process does not have to be a complex or daunting task. Learn the five key steps companies can take.

What is the J Curve?

The J Curve is a framework that analyzes political development within twelve countries which have economic growth opportunities, but pose vastly different kinds of challenges for policy makers and businesses that are expanding globally. Each nation’s relative position on the curve is dynamic, subject to multiple variables and pressure points that determine its political and economic openness.

Understanding & managing political risk

The J Curve can help companies to evaluate the impact of political development on important business factors such as investment timing, opportunity assessment, operating stability, supply chain stability, and contractual breaches.

Steps to assess & manage political risk

In today’s global business environment, management of political risk is central to corporate strategy and understanding where a country sits on the J Curve is a crucial first step to making better decisions about how, when, and where to invest internationally. Incorporating political risk assessment into the business decision process does not have to be a complex or daunting task. Learn the five key steps companies can take.