Political Risk Analysis

The ability to conduct business in a certain country is highly affected by that country’s political environment and government policies. Those forces are constantly in flux even in mature countries with stable legal, financial and regulatory frameworks. Conditions can be particularly unpredictable in frontier and emerging markets, where standards are still evolving and there can be considerable overlap between family ties, commercial interests and regulatory and governmental authority. Business licenses can be revoked without explanation, markets can be upended by politically-connected entrants and the government’s ability to maintain order and the rule of law may fluctuate. 

Kroll helps companies track the changes to the unwritten rules of business in the countries where they operate. Our offices around the world are staffed by local teams of investigators, market specialists and political analysts who combine technical expertise with extensive source networks that reach into the country’s government, commerce and culture. We have an unparalleled record in helping our clients cut through uncertainty when they are confronted with sudden barriers to entry, unexpected regulatory action or unreliable public safety or infrastructure. Our deliverable is not an off-the-shelf report of political minutiae, but rather a custom, actionable analysis of the issue at hand along with a detailed response strategy drawn from our long-standing familiarity with the local market and the governmental, regulatory and other players involved. We have worked with clients in a wide range of industries and have particular experience with businesses in sectors that are dependent on government licenses and contracts, including energy, natural resources, import/export and technology, media and telecommunications. 

Case Study

Market Entry and Political Risk in Myanmar

An Asian company looking to enter the Myanmar market needed to understand the dynamics of key stakeholders in Myanmar and their continued and likely political and economic leverage. Understanding these dynamics was critical to the company successfully operating in this opaque market.