What measures can a large multinational business take to monitor the political environment in its

various operating areas?

Political risk factors can directly influence companies’ ability to achieve their growth and profit
targets. Hence, ongoing research and political risk analysis are perhaps the most important
foundational elements of any emerging market business strategy. Organisations can also purchase
political risk insurance, which some policies will compensate the company if a particular event
happened. Also, consider diversifying overseas suppliers, so that all the risks aren’t concentrated if
main supplier got disrupted by political risk. Many such companies hire lobbyists within the
governments they deal with as middle men to ensure a direct communication link to the
governments and have an active role within the government for a hands on method of cooperation.

In conclusion, recovering from an adverse political event is likely to be quicker and easier if you
prepared for it ahead of time.