Premium Essay

Geopolitical Risk

In:

Submitted By subs91
Words 367
Pages 2
. Introduction
If one asks what is really new after the end of the so-called Cold War, one has to accept that instead of new, modern order concepts in secur ity policy theories there is much inertia, which extends the life of old order concepts, and still also a prevailing thinking in categories of East-
West and North-South confrontation. Today, this certainly happens in categories which are rather free from ideologies, but still according to ge opolitical perceptions of balances and counter- balances. And one must not forget that the main opponents in the Cold War, the U.S.A. and
Russia, still maintain their strategic nuclear ar senals and, therefore, an antagonistic base component in their relations.
Beyond that it is also necessary to develop courage for new scenarios, for new thinking, indeed perhaps for something like ‘mind games’ - in an essay - based, of course, on perceptions from the past and the present. Extrapolations are indeed permitted when dealing with future scenarios. Also, potential constellations have to be aimed at which guide beyond historic reflections or so-called current analyses. Therefore, the reader will occasionally also come across subjunctives in this essay. The future is open
; occasionally, we may also encircle it with
‘unbrushed thinking’.
Is the East-West conflict really over? Or has it only declined in importance because of a much weaker Russia - compared with the Soviet Union - , her concentration in a limited area compared with its former global dimension, and the change from a comprehensive confrontation
(ideological, political, economic and military) to a co mpetition for zones of influence. If this is so
- and there is no reason to deny the fact that th ere still exists a confrontational situation between the ‘West’ and Russia - , then the basis for it mu st be geopolitical

Similar Documents

Free Essay

Global Agenda Council on Geopolitical Risk

...Mauro Martín Bermudez Economic global trends Bi 2º ABP 9 de otubre del 2012 GLOBAL AGENDA COUNCIL ON GEOPOLITICAL RISK A)Asseing the effectiveness of global institutions due to the rise of Regionalisim. Global institutions OLD and NEW. These old and new global institutions have some factors that affected them and explain why these Global institutions have become weaker even tho the demand has improved: • governance estructures that don’t have legitimacy • Insuficient supports from today ……………. • Inefectiveness • Prone the least common denomator outcome Many international organizations, such as the G20 are getting weaker, heur losing power, in so to speak, that their loosing the power of speechness in an international view, as an intermediary , mediator. And this is prejudicial for the new emerging countries since they don’t have any institutions to tackle a range of problems.The structure of these emerging countries have some or all of the next caracteristics: • Coalition between the willing and the capable • These countries mostly depend on crontibutions from foundations or groups, like the bill gates foundation • To adquire more political power they would alie with bigger countries • They are in need of inancial or monetary backstops Regional aliences continue to gain traction, but since regionalisim due to its...

Words: 421 - Pages: 2

Premium Essay

“Critically Evaluate How International and Geo-Political Risk to Business Might Impact Upon a Person’s Overall Lifestyle”.

...geo-political risk to business might impact upon a person’s overall lifestyle”. Introduction My lifestyle keeps me busy but I enjoy the ability to catch up with friends and relax at a café or the beach. I am able to do the things I enjoy through working two jobs, on a regular roster. I enjoy cultural activities with friends in Sydney and regularly getting to the beach for a swim. Australia is a beautiful country which allows me to enjoy the sun and beach on a regular basis. A combination of flexibility and structure allows me to financially support myself while studying full-time; work is enjoyable and adds to my social and physical well-being. The flexibility in university and work allows me to catch up with friends regularly, while maintaining my financial independence. The political environment enhances my wellbeing by provide an avenue to defer my university fees until I graduate and get a job. Risk is considered the probability of a specific loss of worth, against the prospect of gaining value through the intentional interaction with uncertainty (Slovic, 2000). Risk is associated with a given action and/or inaction, of a foreseen/unforeseen nature that can result in a loss or gain in regards to financial wealth or physical health. Slovic (2000) expresses that all human interactions carry some risk, but the degree of risk depends on the situation and the perception of its severity. An illustration of risk involves...

Words: 1249 - Pages: 5

Free Essay

Political Risk

...investopedia.com/terms/g/globalization.asp#ixzz1pfhwYx3N).” Because of this worldwide phenomenon, the domain of finance looks very different today than it did ten years ago. In a globalized world comes an increased sensitivity to geopolitical risks. What is geopolitical risk? Geopolitical risk is “The risk that an investment's returns could suffer as a result of political changes or instability in a country (http://www.investopedia.com/terms/p/politicalrisk.asp#ixzz1pfaHX6vY).” Instability affecting investment returns could stem from a change in government, foreign policy makers, legislative bodies, military control, or outbreak of war. How does geopolitical risk affect us in our everyday lives? One example is the political turmoil currently in Iran. One article points out that “oil has jumped by 9.3 percent since January” as a result of a shortage speculation. The tendency of investment funds and businesses to move beyond domestic and national markets to other markets around the globe, thereby increasing the interconnectedness of different markets. Globalization has had the effect of markedly increasing not only international trade, but also cultural exchange (http://www.investopedia.com/terms/g/globalization.asp#ixzz1pfhwYx3N).”             Political risk isn’t easy to manage. For instance, not every country that provide exports to the United States is an...

Words: 268 - Pages: 2

Premium Essay

Supply Chain Management

... Topic: What are different options available to mitigate different risks in a global supply chain? Risks in global supply chain Risk * Exposure to chance of injury or loss * Hazard or dangerous chance * Chance of loss * Degree of probability of such a loss Global supply chains can increase efficiency, but they can also increase risk. For example the Japanese earthquake and tsunami, the floods in Thailand and the ash clouds caused by the Icelandic volcano—have demonstrated how far the consequences of such risks can extend. The Japanese earthquake, for example, severely affected global electronics production and led to extended business disruptions for the automotive industry. These are some of the risks that can affect the global supply chain: * Supply Risks. Impacts elements of inbound supply, implying that a supply chain is unable to meet the demand in terms of quantity and quality of parts and finished goods. The outcome is labeled as a supply disruption. * Demand Risks. Impacts elements of the outbound supply chain where the extent or fluctuation of the demand is unexpected. This is labeled as demand disruption. * Operational Risks. Impacts elements within a supply chain, impairing its ability to supply services, parts or finished goods within the standard requirements of time, cost and quality. Transportation is one of the most salient operational risks. * Exchange...

Words: 1311 - Pages: 6

Premium Essay

Comprehenive Analysis Outline

...Options Available 1. Foreign Owned Banks F. Social Health and Environmental Conditions 1. Little Regulation 2. Pollution G. Terrorism Threats 1. Lack of Terrorism 2. High Rate of Violent Crimes 3. Drug Trafficking II. Country Analysis A.    Political stability 1.      Relatively low geopolitical and domestic political risks in Mexico will increase over the long-term. 2.      The war on terrorism has already tightened US border security and immigration rules, opening an important social safety valve for Mexico. 3.       Hardening US counter-drug policy in Mexico could heighten already high social tensions. 4.      Domestic political risk will increase by continued weak governance. B.     Economic conditions 1.      Economic growth will remain around one percent this year and next year. 2.      The chances of a sharp economic downturn are a concern with the weakened economy. 3.      High fiscal risk, as measured by the public sectors growing debt burden, will remain high over the long-term. C....

Words: 645 - Pages: 3

Premium Essay

Integrating

...Integra(ng)Risk)Management) into)Strategy)&)Corp)Governance) Peter%Verhezen% Principal)Verhezen)&)Associates)) Fellow)Harvard)Kennedy)School) Adjunct)Professor)Melbourne)Business)School) ) ) This)slide)presenta(on)has)been)prepared)for)and)in)collabora(on)with) Pri)Notowidigdo) Risk = effect of uncertainty on objectives Scenarios / Probabilities Positive deviation Opportunities Upside Risk has a positive side Target Negative deviation from target Downside Future: probabilities Negative deviation Today’s Value (mark-to-market) Threats As management projects into the future, the value of the firm will be affected by many different market and business variables – i.e. risk factors. Tomorrow’s Possible Values (mark-to-future) 2 Mortgage Crisis => Global Financ Crisis hKp://www.youtube.com/watch?v=KaqvwOJx2eQ) Scenarios / Probabilities ) Positive deviation Opportunities Upside Risk has a positive side Target Risk Appetite Future: probabilities But usually perceived as negative Downside Negative deviation Today’s Value (mark-to-market) Threats As management projects into the future, the value of the firm will be affected by many different market and business variables – i.e. risk factors. Tomorrow’s Possible Values (mark-to-future) 3 Within boundaries & above average High Moral & Social Norms / Higher than Average Value + + Risk Opportunity Value at Risk (1) Enrich Shareholders & Serve Stakeholders ...

Words: 575 - Pages: 3

Premium Essay

Advanced Corporate Finance

...Advanced Corporate Finance [FN2] Examination Blueprint 2013/2014 Purpose The Advanced Corporate Finance [FN2] examination has been constructed using an examination blueprint. The blueprint, also referred to as the test specifications, outlines the content areas covered on the examination and the weighting allotted to each content area. This document also lists the topics, the level of competence for each topic, and the related learning objectives and competencies. The learning objectives have been designed to ensure that the competencies are met. In addition, information is provided on the proportion of each question type presented in the examination (that is, multiple choice, quantitative problems, and so on). Use Candidates should use the examination blueprint to prepare for the course examination. The blueprint may not include all the topics listed in the course materials; however, candidates are still responsible for acquiring a broad-based knowledge of all topics not listed in the blueprint since these topics will be tested in assignment and review questions. The topics not listed in the blueprint will also provide candidates with a greater depth of understanding of finance concepts. Examination Objectives The objective of the 4-hour comprehensive examination is to test CGA candidates on the prerequisite knowledge required for advancement into PA1 and PA2, so as to ensure that the candidates have the broad-based knowledge in finance needed to function properly in the association’s...

Words: 4207 - Pages: 17

Premium Essay

Developing Yourself as an Hr Practitioner

...Risk Factors MD&A Quantitative and Qualitative Disclosures About Market Risk Financial Statements Notes to Financial Statements Shareholder Return Performance Graph Quarterly Financial Data Selected Historical Financial Data Non-GAAP Financial Measure Reconciliation Management’s Reports Reports of Independent Registered Public Accounting Firm Risk Factors:  1  2  3  4  5  >  Operational Risks Premature termination of our management or franchise agreements could hurt our financial performance. Our hotel management and franchise agreements may be subject to premature termination in certain circumstances, such as the bankruptcy of a hotel owner or franchisee, or a failure under some agreements to meet specified financial or performance criteria that are subject to the risks described in this section, which the Company fails or elects not to cure. A significant loss of agreements due to premature terminations could hurt our financial performance or our ability to grow our business. Our lodging operations are subject to global, regional and national conditions. Because we conduct our business on a global platform, our activities are susceptible to changes in the performance of both global and regional economies. In recent years, our business has been hurt by decreases in travel resulting from weak economic conditions and the heightened travel security measures that have resulted from the threat of further terrorism. Our future economic performance could be similarly...

Words: 1530 - Pages: 7

Premium Essay

International Management Study

...environment Sources of Risk for International Managers -Exogenous- General environmental factors, industry-related uncertainties and some firm-specific uncertainties. -Endogenous- Uncertainties that arise from within the firm, and include managerial perceptions, attitudes and organizational perspectives. -Top two exogenous risks facing business leaders and policy makers for 2012 and the next decade would be severe income disparity (The unequal distribution of household or individual income across the various participants in the economy) and chronic fiscal imbalances (situation where all of the future debt obligations of a government are different from the future income streams) -Other issues: natural disasters such as 2011 earthquake in Japan, flood in Thailand, Political uncertainty in China and Middle East -Globalization has compounded the types and level of business risks. *Typical challenges that managers face involve politics, cultural differences, global competition, Terrorism and Technology. Managers in companies are struggling to find ways to balance their social responsibilities, their images, and their competitive strategies. -PESTEL- An analytical tool to develop and understanding of exogenous risk -Pestel analysis- Political, Ethical, Social, Technological, Environmental and legal understanding or environmental scanning that is CRITICAL if we are to strategically plan and develop our value proposition. -> Exogenous creates Endogenous RISK SWOT Analysis- an...

Words: 3127 - Pages: 13

Free Essay

The Future

...INTRODUCTION Country risk refers to the risk of investing or lending in a country, arising from possible changes in the business environment that may adversely affect operating profits or the value of assets in the country. For example, financial factors such as currency controls, devaluation or regulatory changes, or stability factors such as mass riots, civil war and other potential events contribute to companies' operational risks. This term is also sometimes referred to as political risk; however, country risk is a more general term that generally refers only to risks affecting all companies operating within or involved with a particular country. Many investors choose to place a portion of their portfolios in foreign securities. This decision involves an analysis of various mutual funds, exchange traded funds (ETFs), or stock and bond offerings. However, investors often neglect an important first step in the process of international investing. When done properly, the decision to invest overseas begins with determining the riskiness of the investment climate in the country under consideration. Country risk refers to the economic, political and business risks that are unique to a specific country, and that might result in unexpected investment losses. This country risk analysis is a fundamental step in building and monitoring an international portfolio. Investors that use the many excellent information sources available to evaluate country risk will be better prepared...

Words: 5708 - Pages: 23

Premium Essay

Journal Paper

...and Country Risk: What kind of Interaction?” Supervisor: Professor D. Kyrkilis Stavroula Samara stav_samara@windowslive.com Foreign Direct Investment and Country Risk Table of Contents Abstract…………………………………………………………………………………………………………………….4 Introduction………………………………………………………………………………………………………………4 Foreign Direct Investment…………………………………………………………………………………………6 The Definition……………………………………………………………………………………………………………6 The Types………………………………………………………………………………………………………………….8 The Multinational Corporations………………………………………………………………………………..9 The Effects………………………………………………………………………………………………………………11 The Final Remarks…………………………………………………………………………………………………..13 Country Risk……………………………………………………………………………………………………………14 The Definition………………………………………………………………………………………………………….15 Various approaches of the literature on country risk (table)……………………………………17 The Historical Background………………………………………………………………………………………17 Country Risk Types and Measurements…………………………………………………………………..18 The Factors……………………………………………………………………………………………………………..22 Country Risk Assessment…………………………………………………………………………………………23 Risk Measures (table)………………………………………………………………………………………………25 The Methods…………………………………………………………………………………………………………..27 How does Country Risk matter for FDI?.......................................................................29 FDI and Country Risk: A Research……………………………………………………………………………33 The Data…………………………………………………………………………………………………………………33 2 Foreign Direct Investment and Country Risk The Concept...

Words: 13068 - Pages: 53

Premium Essay

Risk Management Task 1a

...Running head: JIT2 (RISK MANAGEMENT): TASK 1A 1 JIT2 (Risk Management): Task 1A It has been stated that, "Denial is a common tactic that substitutes deliberate ignorance for thoughtful planning," Charles Tremper (n.d.) who authored various risk management books. We have been hired, as a consultant in our first task is to create and present to management of business contingency plan combined with risk management to our new client. There has been some concern from both the IT department and legal departments about personal identifiable information sensitive information, client records, and other sensitive information regarding the ethical use and protection of this information. Our goal is to have client confidence along with some sense of job satisfaction; therefore, our boss has informed us that we get to choose our very first client. Our selection can be the place we actually work, any local business, or even a Fortune 500 company. One requirement is that our client must operate globally throughout its business. We will exclude any proprietary information, confidential information, or anything that can be considered sensitive. No names of real people involved with the business, any suppliers, or anything else that could be identifiable will be used. Instead we will only use made-up or fictional names for this task. No actual financial data will be used but rather be addressed using vague or generic terms when appropriate. Due to concerns in the global marketplace...

Words: 3310 - Pages: 14

Premium Essay

Financial Risk Management

...ESSENTIALS of Financial Risk Management Karen A. Horcher John Wiley & Sons, Inc. ESSENTIALS of Financial Risk Management Essentials Series The Essentials Series was created for busy business advisory and corporate professionals. The books in this series were designed so that these busy professionals can quickly acquire knowledge and skills in core business areas. Each book provides need-to-have fundamentals for those professionals who must: Get up to speed quickly, because they have been promoted to a new position or have broadened their responsibility scope • • Manage a new functional area • Brush up on new developments in their area of responsibility • Add more value to their company or clients Other books in this series include: Essentials of Accounts Payable, Mary S. Schaeffer Essentials of Balanced Scorecard, Mohan Nair Essentials of Capacity Management, Reginald Tomas Yu-Lee Essentials of Capital Budgeting, James Sagner Essentials of Cash Flow, H. A. Schaeffer, Jr. Essentials of Corporate Performance Measurement, George T. Friedlob, Lydia L. F. Schleifer, and Franklin J. Plewa, Jr. Essentials of Cost Management, Joe and Catherine Stenzel Essentials of Credit, Collections, and Accounts Receivable, Mary S. Schaeffer Essentials of CRM: A Guide to Customer Relationship Management, Bryan Bergeron Essentials of Financial Analysis, George T. Friedlob and Lydia L. F. Schleifer Essentials of Financial Risk Management, Karen A. Horcher ...

Words: 61657 - Pages: 247

Premium Essay

Risk Management

...JIT2 (Risk Management): Task 1A Our firm has been hired as a consultant, the first task my team and I have been assigned is to create and present to management both a risk management and a business contingency plan for our client. Both the legal and IT departments have expressed their concerns regarding the ethical use and protection of sensitive data, customer records, and other information systems content of both the firm and the client. In an effort to follow the company’s goal of each project building employee confidence and job satisfaction, the team has been allowed to select our first client. The client we choose can be a former or current employer, any local business, any nationally or internationally held publicly traded or privately held company. The one prerequisite is that the client operate globally in at least one aspect of it business. To help ensure anonymity and security any information that could be considered confidential, proprietary, or personal in nature will be excluded. No actual names of people, suppliers, the company, or other identifiable information will be included. In addition every effort will be made to ensure fictional names used will be obscure as possible. Company-specific data, including financial information, will be addressed in the most general and generic means possible when appropriate. Per the client’s request will address the following items: A. Generate a risk register that includes eight valid risks faced by the client. The...

Words: 2097 - Pages: 9

Premium Essay

Issues in Risk Mgnmt

...Issues in Risk Analysis Risk refers to a situation in which possible future events can be defined and probabilities assigned (Keat & Young, 2009). It is the chance that an investment's actual return will be different than expected (Risk, 2013). With risk comes the possibility of losing some or all investments (Risk, 2013). Uncertainty refers to situations in which there is no viable method of assigning probabilities to future random events (Keat & Young, 2009). In order to understand the relationship between uncertainty and risk, first I would like to define risk. First, in technology and economics, risk is expressed as an expected value that an event will be accompanied by undesirable consequences (The Difference Between Risk and Uncertainty, 2013). Here it is measured by both the probability of the event and the seriousness of the consequences (The Difference Between Risk and Uncertainty, 2013). For example, the probability that a bearing will fail in five years is .001 percent (The Difference Between Risk and Uncertainty, 2013). In the second area of planning, risk is what can happen that will cause the project to fall behind schedule or go over cost. During planning, the known-unknowns are risk (The Difference Between Risk and Uncertainty, 2013). The final area is in management; risk is the possibility that outcomes will be different from what we expect. It is the effort to manage both the known-unknowns and unknown-unknowns (The Difference Between Risk and Uncertainty...

Words: 818 - Pages: 4