Recent developments have provided a stark reminder to organizations that political risks can affect their activities, objectives and profitability. Crises such as the Eurozone negotiations, the debt ceiling debate in the United States and the Arab Spring protests throughout North Africa and the Middle East took form rapidly and with little advance warning.
Yet, while the management of financial, market and other types of risk has become a paramount business consideration since the economic crisis of 2008, Accenture’s 2011 Global Risk Management Study found that most companies do not measure—or manage—political risk.
Accenture believes that political risk management can be integrated into existing Enterprise Risk Management (ERM) systems, yielding a number of
benefits.