Abstract
In this chapter, we consider the context of “political risk” and identify a number of alternative frameworks for its definition and measurement, as found in the relevant literature. Given that political risk is very important to large and multinational corporations, it is mostly considered from an enterprise risk management standpoint.
In particular we outline the prevailing definitions of the “political risk” as presented in the literature within the last four decades and classify them in context. Subsequently, based on this classification, we review some of the most prominent approaches for measuring political risk, including the political risk assessment frameworks by ICRG, PRS, BERI, and AON. Based on our findings, we then consider criteria which can be used to select an appropriate measure of political risk depending on the scope and objectives of the risk analyst.
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Psychogyios, I., Koutsoukis, NS. (2018). Political Risk Frameworks: A Literature Review. In: Roukanas, S., Polychronidou, P., Karasavvoglou, A. (eds) The Political Economy of Development in Southeastern Europe. Contributions to Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-93452-5_2
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DOI: https://doi.org/10.1007/978-3-319-93452-5_2
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