Is Global Political Risk a Threat to Large U.S. Corporations?

Unexpected political risk is a reality of the global business environment. This study investigates the political risk assessment process and the relevance of different political risks. Large U.S. corporations were surveyed and all responding corporations employed in-house and/or external expertise for assessment. Compared with a similar study conducted 17 years ago, the results reveal a lower exposure to political risk. Simultaneously, these corporations anticipate greater exposure to political risk over the next five years, and the null hypothesis is rejected in favor of an alternative. The findings will aid large U.S. corporations, financial institutions, and policymakers in political risk assessments.