Panorama - The rise and rise of political risks
Political risk seems to have been at the core of concerns since 2016, following numbers of articles and editorials on the topic. With increasing uncertainty in Europe and in the United States, and the systemic effects that could stem from it, the impact of political risk has become a reality. But are we in a world in which political risk is more significant?
While analysts strive to describe the phenomenon, there is little agreement on a definition or even a measurement of political risk. Yet, the latter encompasses several dimensions, but how can we combine the occurrence of a war, the possibility of a popular revolt, and the rise of populism? That is the question addressed by this study through a new, quantified risk model covering 159 countries, from 2007 to 2016.