Systematic political risk analysis for planners

Corporate and strategic planners for international businesses have always been aware of the importance of domestic and foreign political conditions in defining both risks and opportunities for their businesses. Unfortunately, the complexity and subjectivity of political analysis, along with the lack of valid, relevant, and up‐to‐date information makes it very difficult to integrate political analysis into the planning process. Yet in recent years, the U.S. business environment has been radically altered time and again by international events such as changes in government, outbreaks of political turmoil, increasing or decreasing restrictions on the operations of international business, changes in protectionism, or basic shifts in fiscal and monetary policy. At the very least, planners need a warning system to alert them to possible serious reversals of the business climate.