Political Risk belongs under the broader non-financial risk analysis. RBA expertise in this area comprise of two different aspects:
Political conflict analysis (including political economy)
Analysis of security risks
When a company is considering investment, trade or other commercial activities in a country with a high degree of uncertainty, with weak institutions, human rights violations, gender discrimination and inherent social exclusion, corruption challenges, and security problems, it is decisive to undertake a comprehensive analysis of the potential risks and problems the company may be exposed to.
Since conflicts may often be of a very local character – although they often reflect common national fault lines (class, ethnicity, ideology, religion, gender) – a good risk analysis is best done by bringing in experts with in-depth knowledge of the local context.
A key RBA asset is our global network of associates and contacts which may reach from national level down to any concerned community.
RBA advisors have worked for clients responsible for development programs across the world. The unique knowledge and experience we have accumulated is put at the service of private corporations that increasingly enter complex markets. We help identify potential threats to a safe and sustainable business activity, and advice on measures to mitigate them.
Contact us for more information or for a non-binding meeting!
RBA Political Risk Services
We assist companies, investors and government agencies with risk analysis in the following ways:
Collecting and compiling empirical data from open sources (news coverage, available reports and literature)
Mapping of stakeholders and actors, through systematic research in the relevant country, region, communities; determining conflict patterns and actors (drivers of conflicts)
Stakeholder engagement (see separate service)
Identification of mitigation actions: how the proposed investment may avoid pitfalls and build alliances that make the engagement sustainable.
Our methodology comprises the analysis of national legal provisions, official policies, institutional structures – and at the same time the more invisible aspects of the local conflict pattern:
Political processes (conflicts about power, goods and resources)
Economic and financial processes and their connections to the political power struggle
Formal and informal institutions and decision-making processes, incentive structures and interest constellations