The Management of Political Risk

  • Derek F. Channon
  • Michael Jalland


One distinctive feature of the multinational enterprise is the need for management to adequately balance the political risk exposure of the organisation throughout its global operations. Although managements are becoming increasingly aware of the importance of political factors in determining the outcomes of strategic decisions, systematic attempts to evaluate risk exposure are not common. Indeed there is some evidence to suggest that many multinationals are less sophisticated in their attitude to foreign investment decisions than they are to domestic opportunities.1 An earlier survey actually revealed that few major US multinationals conducted a systematic evaluation of political risks ‘involving their identification, their likely incidence and their specific consequences for company operations’.2


Host Country Political Risk Selective Intervention Management Contract Host Government 
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Copyright information

© Derek F. Channon with Michael Jalland, Manchester Business School 1978

Authors and Affiliations

  • Derek F. Channon
    • 1
  • Michael Jalland
    • 1
  1. 1.Manchester Business SchoolUK

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