Answer to Question #201284 in Political Science for Asiphe Bande

Question #201284

Define the constitutive elements that comprise political risk analysis in the study of political risk

Expert's answer

a) Scenario construction- The analyst goes through three basic phases: 1) he analyzes the social ties and history of the country in question in depth; 2) he tries to predict the growth of these ties; and 3) he writes down the most plausible scenarios.

b) The World Political Risk Forecasting Source methodology- This method includes: (1) the group of three to 9 experts in some countries answer a series of standard questions, identifying at least seven relevant actors in the country to be analysed; and (2) the possibly future situation is probabilistic-ally calculated in the light of possible future circumstances

(c) The individual approach - The identification of risk areas of a certain investment is sufficient to carry out an analysis with that technique, and then to look out potential risk factors in the host nation.

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