POLITICAL RISKS AND ITS IMPACT ON BUSINESSES

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POLITICAL RISKS AND ITS IMPACT ON BUSINESSES

POLITICAL RISKS AND ITS IMPACT ON BUSINESSES

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Political risk will always impact businesses and although they cannot be eliminated can be managed to ensure that businesses stay afloat and thrive. The government is key in formulation of policies and setting the minimal local content requirements. It is the responsibilities of every business to understand political risk in the environment were it operates. Conflicts and violence usually occur due to competing interests of two or more parties. Violence can result in deaths, human displacements, destruction of property and even infrastructure.  Conflicts and violence result in high cost of doing business. Property seizure can occur even in the most democratic and free economies in the world. That national interest supersedes personal interest and that governments all over the world have grabbled with the issues of nationalization.