Political Risk Analysis Case Study The following case study is based on the production of an ‘A1’ grade report. See Products for explanations of grades of report.
Opportunities in Volatile Markets
The government of a country with volatile politics and associated violence advertised the tender of a contract for a concession and national infrastructure construction project.
The business development Working Group of a company quickly began to assess the possibility of entering this new market with an existing product. The company only had a few weeks to respond with their competitive bid.
Threats in Challenging Regions The Working Group soon realized they needed a comprehensive analysis of the country’s political risks, which might impact their shareholders’ potential investment. The Working Group also knew they did not have the time or the in-house resources to conduct the analysis themselves.
Consequently, the Working Group purchased generic country and industry reports. These reports comprised data sufficient for a basic understanding of the new market. However, the documents did not provide a specific explanation of the particular political risks for the proposed project. They contacted Political Risk Analysis to provide this for them.
Political Risk Analysis Solution
Immediately Political Risk Analysis were contacted, the Terms of Reference for the report were agreed with the Working Group.
Associate Analysts quickly interviewed stakeholders from the country and specific industry to collect primary data regarding international relations, domestic politics, the relevant industrial sector, and security issues. Associate Analysts also conducted research of all public data available regarding these subjects.
Once all data from these primary and secondary sources had been collected, a designated Associate Analyst collated the information and produced a risk assessment.
The analysis was edited by a Political Risk Analysis director. The final version was delivered to the company’s Working Group by the agreed deadline.
Risk and Reward
On receipt of the report, the Working Group became apprehensive about the potential risks that had been uncovered. Nevertheless, they soon realized the risks could be mitigated.
The Working group proposed to the Board that the company should enter the tender process. Investment for the new venture was approved by the Board. The company then went on to win the contract and entered the market. The company subsequently led the market.
As expected, there were difficulties associated with the project; but, the risks were managed by the new venture’s leadership.
Continued Support
Political Risk Analysis continued to support the project by producing up-to-date reports on the constantly changing political risks for the new business.