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Political Risk in LatAm

The Inaugural Instalment of a Regular Column

APRIL, 2012 By James Knight Consistently, C-suite executives cite political risk as the second-biggest risk in LatAm, according to participants in the quarterly FT/Economist Global Business Barometer. Above corruption, above inflation, above skills shortages, secondChess only to market and economic risk. So it seems appropriate for this magazine to begin a column examining the subject. Where to start? Well, perhaps with an attempt at a definition. In its widest sense, 'political' risk is potential harm to an operation or transaction arising from political behaviour. This can occur from the interplay of geopolitical tensions, social unrest, security, regulatory change, and reputational and ethical issues. Two recent examples show just how politically-charged the business environment is on the continent: over the past six months Brazilian Preside....

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