WP_Query Object ( [query] => Array ( [name] => political-risk-management [post_type] => resources [resource-type] => blog ) [query_vars] => Array ( [name] => political-risk-management [post_type] => resources [resource-type] => blog [error] => [m] => [p] => 0 [post_parent] => [subpost] => [subpost_id] => [attachment] => [attachment_id] => 0 [pagename] => [page_id] => 0 [second] => [minute] => [hour] => [day] => 0 [monthnum] => 0 [year] => 0 [w] => 0 [category_name] => [tag] => [cat] => [tag_id] => [author] => [author_name] => [feed] => [tb] => [paged] => 0 [meta_key] => [meta_value] => [preview] => [s] => [sentence] => [title] => [fields] => [menu_order] => [embed] => [category__in] => Array ( ) [category__not_in] => Array ( ) [category__and] => Array ( ) [post__in] => Array ( ) [post__not_in] => Array ( ) [post_name__in] => Array ( ) [tag__in] => Array ( ) [tag__not_in] => Array ( ) [tag__and] => Array ( ) [tag_slug__in] => Array ( ) [tag_slug__and] => Array ( ) [post_parent__in] => Array ( ) [post_parent__not_in] => Array ( ) [author__in] => Array ( ) [author__not_in] => Array ( ) [search_columns] => Array ( ) [ignore_sticky_posts] => [suppress_filters] => [cache_results] => 1 [update_post_term_cache] => 1 [update_menu_item_cache] => [lazy_load_term_meta] => 1 [update_post_meta_cache] => 1 [posts_per_page] => 10 [nopaging] => [comments_per_page] => 50 [no_found_rows] => [order] => DESC ) [tax_query] => [meta_query] => WP_Meta_Query Object ( [queries] => Array ( ) [relation] => [meta_table] => [meta_id_column] => [primary_table] => [primary_id_column] => [table_aliases:protected] => Array ( ) [clauses:protected] => Array ( ) [has_or_relation:protected] => ) [date_query] => [queried_object] => WP_Post Object ( [ID] => 11110 [post_author] => 43 [post_date] => 2023-10-10 22:19:49 [post_date_gmt] => 2023-10-10 22:19:49 [post_content] => When Apple unveiled the new iPhone 15 earlier in September, they touted the shift to a USB-C port as an advancement that allows users to use a single cord to charge all their devices. While this sounds great, it isn't anything new — most iPhone competitors switched to USB-C around 2016. Why did it take Apple so long to switch to the "universally accepted standard?" Well, they had no choice. The European Union made the choice for them when they passed a law requiring common plugs by 2024. In other words, Apple had to change to USB-C if they wanted to continue selling their devices in Europe. This is just one of many examples of companies that had to make a shift in their product or service because of legislative change. That is why it is paramount for companies to prepare for political changes that could impact their business. Apple most likely anticipated this would happen eventually, and they were able to shift their design, manufacturing, and supply chain needs to ensure business continuity. Preparing for changes in the political landscape is what we call political risk management. In this article, we’ll cover the six steps of a successful political risk management strategy:

What is Political Risk Management?

Political risk management (PRM) is how organizations anticipate, identify, and respond to political changes that affect their day-to-day operations. Political risk management is often associated with international relations, but the same strategies can be applied to domestic affairs. Political risks come in many forms. The most obvious are legislative or regulatory changes, like in the case of Apple. Common legislative issues associated with political risks include tax, employment, and environmental protection laws. Acts of terrorism and war are also political risks — take, for example, the war in Ukraine's impact on oil prices across the globe in 2022. But political risks are not always so dramatic — they can be as nuanced as how an influential politician talks about your business, like when former President Trump tweeted about Toyota moving production to Mexico. Having a political risk management strategy in place means your organization is anticipating and ready to spring into action at a moment's notice.

Examples of Political Risks

Here are some examples of times when companies had to change their business or product due to a shift in public policy:

• GDPR and Data Privacy: The European Union's General Data Protection Regulation (GDPR) came into effect in 2018, imposing strict rules on how companies collect, store, and use personal data. Many companies, including tech giants like Facebook and Google, had to make significant changes to their data handling and privacy policies to comply.
• Automotive Emissions Standards: Governments worldwide have imposed stricter emissions standards to combat air pollution and climate change, pushing automakers to invest in cleaner technologies, including electric and hybrid vehicles.
• Single-Use Plastics Ban: Several countries and cities have introduced bans or restrictions on single-use plastics, such as bags, straws, and cutlery, leading companies to develop and promote alternative, eco-friendly products.
• Trans Fat Ban: Due to health concerns, many countries have banned or restricted the use of artificial trans fats in food products. Food manufacturers had to reformulate many products to remove or reduce trans fats.
• Net Neutrality: In countries where net neutrality regulations have been implemented, internet service providers have had to adjust their business models and practices to comply.
• Banking and Financial Regulations: After the 2008 financial crisis, many countries introduced stricter regulations for banks and financial institutions (e.g., the Dodd-Frank Wall Street Reform and Consumer Protection Act in the U.S.). This led to significant changes in the operations, risk management, and transparency practices of many financial institutions.
• Pharmaceuticals and Clinical Trials: Regulatory changes and government action often impact how pharmaceutical companies conduct clinical trials, market their products, and disclose information to the public.

Steps of a Political Risk Management Strategy

1. Identify Potential Political Risks

The first step in creating a political risk management strategy is identifying potential risks. At this stage, the more risks you can identify, the better. The goal is to eliminate or minimize blind spots. Look at the examples above and consider similar changes that could affect your business. As an exercise, look up and down your supply chain and think of everything that could go wrong. What happens if something happens in the country where you get your source materials? What about shipping and receiving? Next, think about all the people involved in your operation. Don’t just think about employees —  think about vendors, shareholders, and consumers. Are there any political risks related to them?

2. Evaluate Potential Impact

Once you have identified potential political risks, the next step is to evaluate their potential impact on your organization. For example, a change in tax laws could have an immediate financial impact on your organization, while a shift in trade policies could have a more gradual effect over time. It's essential to assess the probability and severity of each potential risk to prioritize them appropriately.

3. Develop an Early Warning System

To effectively manage political risks, organizations need an early warning system that alerts them when a threat arises. Your warning system should involve monitoring state, federal, and international legislation, listening to news and social media, staying connected with industry associations and government agencies, or even hiring external consultants who specialize in political risk analysis. Corporations large and small use Quorum for an early warning system. Quorum gives public affairs professionals tools to create alerts when their political risks are mentioned in legislation, news, and even social media. For example, if your organization is closely connected to oil drilling in Texas, you could set up an alert anytime a member of the Texas state legislature mentions the words “oil” or “drilling.” Sometimes your keywords won’t be so obvious. That was the case when Destinations International spotted language trends among people who supported budget cuts for tourism in Florida. By tracking dialogue, they noticed that terms like “picking winners and losers” were common. Using this information, they were able to build a more effective early warning system. Read their full story.

4. Organize Your Political Risk Task Force

At this point, it is time to bring in additional team members and identify who needs to be notified when problems arise. For example, who is in charge of monitoring political risks at a local level? And who should they alert when they spot a potential problem? Who is in charge of political risks at the federal or international levels? This step is a lot like building a business continuity plan and should include similar elements like step-by-step procedures and flow charts outlining the chain of command. Maintaining a centralized issue management system to store valuable information like SOPs and talking points can be helpful — in Quorum some teams create educational dashboards for this. Preferably, this system is paired with your early warning system. Collaboration is a core part of Quorum and one reason it is great for political risk management. Teams can set up alerts surrounding specific keywords. When something pops up, users can tag their team members or leave comments for everyone else to see.

5. Maintain Stakeholder Relationships

An oft-overlooked component of political risk management, and public affairs in general, involves maintaining relationships with stakeholders, including government officials. Proactively engaging lawmakers allows organizations to act more quickly when situations arise — as opposed to trying to form new relationships in a time of need.

Related: Importance of a Policy Reputation Calendar and How to Make One

When it comes to political risks related to multinational organizations, it makes sense to maintain strong relationships with members of the House Ways and Means and the Senate Finance Committees. Or, if your organization has a strong impact on the environment, you might want to spend more time with members of the Agriculture or Energy and Commerce Committees. A stakeholder management tool like Quorum helps teams track engagements with government officials and other stakeholders and leave notes about meetings to create a single source of truth. On top of that, Quorum comes equipped with a database of lawmakers and their staffers — making outreach a breeze.

6. Proactively Mitigate Political Risks

The goal of PRM is not just to identify and prepare for political risks but also to mitigate them. Mitigation can involve everything from lobbying to prevent unwelcome laws to considering different types of political risk insurance to protect your business. Political risk insurance protects against political shifts that could cause significant financial loss. If you’re operating in places of political instability, insurance will help you, and your shareholders, sleep better at night. In some cases, organizations may even adjust their operations or exit markets altogether in response to political risks. Overall, the goal of mitigating risks is to reduce your liabilities wherever possible. When reducing your liabilities isn’t possible, then having a backup plan in place is the next best thing.

7. Respond Quickly

Once a political risk becomes a reality, it's essential to respond quickly and effectively. If you identified the threat early using a solid detection system, your response efforts might include meetings with key stakeholders and government officials in attempts to slow down new legislation. If the issue is already part of the public discourse, your response might involve executing your crisis communication plan. You might even want to engage your grassroots supporters to make your voice even louder.

---

Political risks are an inevitable part of doing business. From changes in legislation to global conflicts and other political events, organizations must prepare to navigate these challenges to maintain their operations and protect their bottom line. By implementing a political risk management strategy, organizations can identify potential risks, evaluate their impact, and respond effectively to mitigate any adverse effects on their business. You can never be too prepared, and having a plan makes decision-making easier when political instability affects your business. [post_title] => Political Risk Management: 7 Strategies for Navigating Uncertainty [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => political-risk-management [to_ping] => [pinged] => [post_modified] => 2023-10-10 22:19:49 [post_modified_gmt] => 2023-10-10 22:19:49 [post_content_filtered] => [post_parent] => 0 [guid] => https://marketing-staging.quorum.us/?post_type=resources&p=11110 [menu_order] => 0 [post_type] => resources [post_mime_type] => [comment_count] => 0 [filter] => raw ) [queried_object_id] => 11110 [request] => SELECT wp_posts.* FROM wp_posts WHERE 1=1 AND wp_posts.post_name = 'political-risk-management' AND wp_posts.post_type = 'resources' ORDER BY wp_posts.post_date DESC [posts] => Array ( [0] => WP_Post Object ( [ID] => 11110 [post_author] => 43 [post_date] => 2023-10-10 22:19:49 [post_date_gmt] => 2023-10-10 22:19:49 [post_content] => When Apple unveiled the new iPhone 15 earlier in September, they touted the shift to a USB-C port as an advancement that allows users to use a single cord to charge all their devices. While this sounds great, it isn't anything new — most iPhone competitors switched to USB-C around 2016. Why did it take Apple so long to switch to the "universally accepted standard?" Well, they had no choice. The European Union made the choice for them when they passed a law requiring common plugs by 2024. In other words, Apple had to change to USB-C if they wanted to continue selling their devices in Europe. This is just one of many examples of companies that had to make a shift in their product or service because of legislative change. That is why it is paramount for companies to prepare for political changes that could impact their business. Apple most likely anticipated this would happen eventually, and they were able to shift their design, manufacturing, and supply chain needs to ensure business continuity. Preparing for changes in the political landscape is what we call political risk management. In this article, we’ll cover the six steps of a successful political risk management strategy:

What is Political Risk Management?

Political risk management (PRM) is how organizations anticipate, identify, and respond to political changes that affect their day-to-day operations. Political risk management is often associated with international relations, but the same strategies can be applied to domestic affairs. Political risks come in many forms. The most obvious are legislative or regulatory changes, like in the case of Apple. Common legislative issues associated with political risks include tax, employment, and environmental protection laws. Acts of terrorism and war are also political risks — take, for example, the war in Ukraine's impact on oil prices across the globe in 2022. But political risks are not always so dramatic — they can be as nuanced as how an influential politician talks about your business, like when former President Trump tweeted about Toyota moving production to Mexico. Having a political risk management strategy in place means your organization is anticipating and ready to spring into action at a moment's notice.

Examples of Political Risks

Here are some examples of times when companies had to change their business or product due to a shift in public policy:

• GDPR and Data Privacy: The European Union's General Data Protection Regulation (GDPR) came into effect in 2018, imposing strict rules on how companies collect, store, and use personal data. Many companies, including tech giants like Facebook and Google, had to make significant changes to their data handling and privacy policies to comply.
• Automotive Emissions Standards: Governments worldwide have imposed stricter emissions standards to combat air pollution and climate change, pushing automakers to invest in cleaner technologies, including electric and hybrid vehicles.
• Single-Use Plastics Ban: Several countries and cities have introduced bans or restrictions on single-use plastics, such as bags, straws, and cutlery, leading companies to develop and promote alternative, eco-friendly products.
• Trans Fat Ban: Due to health concerns, many countries have banned or restricted the use of artificial trans fats in food products. Food manufacturers had to reformulate many products to remove or reduce trans fats.
• Net Neutrality: In countries where net neutrality regulations have been implemented, internet service providers have had to adjust their business models and practices to comply.
• Banking and Financial Regulations: After the 2008 financial crisis, many countries introduced stricter regulations for banks and financial institutions (e.g., the Dodd-Frank Wall Street Reform and Consumer Protection Act in the U.S.). This led to significant changes in the operations, risk management, and transparency practices of many financial institutions.
• Pharmaceuticals and Clinical Trials: Regulatory changes and government action often impact how pharmaceutical companies conduct clinical trials, market their products, and disclose information to the public.

Steps of a Political Risk Management Strategy

1. Identify Potential Political Risks

The first step in creating a political risk management strategy is identifying potential risks. At this stage, the more risks you can identify, the better. The goal is to eliminate or minimize blind spots. Look at the examples above and consider similar changes that could affect your business. As an exercise, look up and down your supply chain and think of everything that could go wrong. What happens if something happens in the country where you get your source materials? What about shipping and receiving? Next, think about all the people involved in your operation. Don’t just think about employees —  think about vendors, shareholders, and consumers. Are there any political risks related to them?

2. Evaluate Potential Impact

Once you have identified potential political risks, the next step is to evaluate their potential impact on your organization. For example, a change in tax laws could have an immediate financial impact on your organization, while a shift in trade policies could have a more gradual effect over time. It's essential to assess the probability and severity of each potential risk to prioritize them appropriately.

3. Develop an Early Warning System

To effectively manage political risks, organizations need an early warning system that alerts them when a threat arises. Your warning system should involve monitoring state, federal, and international legislation, listening to news and social media, staying connected with industry associations and government agencies, or even hiring external consultants who specialize in political risk analysis. Corporations large and small use Quorum for an early warning system. Quorum gives public affairs professionals tools to create alerts when their political risks are mentioned in legislation, news, and even social media. For example, if your organization is closely connected to oil drilling in Texas, you could set up an alert anytime a member of the Texas state legislature mentions the words “oil” or “drilling.” Sometimes your keywords won’t be so obvious. That was the case when Destinations International spotted language trends among people who supported budget cuts for tourism in Florida. By tracking dialogue, they noticed that terms like “picking winners and losers” were common. Using this information, they were able to build a more effective early warning system. Read their full story.

4. Organize Your Political Risk Task Force

At this point, it is time to bring in additional team members and identify who needs to be notified when problems arise. For example, who is in charge of monitoring political risks at a local level? And who should they alert when they spot a potential problem? Who is in charge of political risks at the federal or international levels? This step is a lot like building a business continuity plan and should include similar elements like step-by-step procedures and flow charts outlining the chain of command. Maintaining a centralized issue management system to store valuable information like SOPs and talking points can be helpful — in Quorum some teams create educational dashboards for this. Preferably, this system is paired with your early warning system. Collaboration is a core part of Quorum and one reason it is great for political risk management. Teams can set up alerts surrounding specific keywords. When something pops up, users can tag their team members or leave comments for everyone else to see.

5. Maintain Stakeholder Relationships

An oft-overlooked component of political risk management, and public affairs in general, involves maintaining relationships with stakeholders, including government officials. Proactively engaging lawmakers allows organizations to act more quickly when situations arise — as opposed to trying to form new relationships in a time of need.

Related: Importance of a Policy Reputation Calendar and How to Make One

When it comes to political risks related to multinational organizations, it makes sense to maintain strong relationships with members of the House Ways and Means and the Senate Finance Committees. Or, if your organization has a strong impact on the environment, you might want to spend more time with members of the Agriculture or Energy and Commerce Committees. A stakeholder management tool like Quorum helps teams track engagements with government officials and other stakeholders and leave notes about meetings to create a single source of truth. On top of that, Quorum comes equipped with a database of lawmakers and their staffers — making outreach a breeze.

6. Proactively Mitigate Political Risks

The goal of PRM is not just to identify and prepare for political risks but also to mitigate them. Mitigation can involve everything from lobbying to prevent unwelcome laws to considering different types of political risk insurance to protect your business. Political risk insurance protects against political shifts that could cause significant financial loss. If you’re operating in places of political instability, insurance will help you, and your shareholders, sleep better at night. In some cases, organizations may even adjust their operations or exit markets altogether in response to political risks. Overall, the goal of mitigating risks is to reduce your liabilities wherever possible. When reducing your liabilities isn’t possible, then having a backup plan in place is the next best thing.

7. Respond Quickly

Once a political risk becomes a reality, it's essential to respond quickly and effectively. If you identified the threat early using a solid detection system, your response efforts might include meetings with key stakeholders and government officials in attempts to slow down new legislation. If the issue is already part of the public discourse, your response might involve executing your crisis communication plan. You might even want to engage your grassroots supporters to make your voice even louder.

---

Political risks are an inevitable part of doing business. From changes in legislation to global conflicts and other political events, organizations must prepare to navigate these challenges to maintain their operations and protect their bottom line. By implementing a political risk management strategy, organizations can identify potential risks, evaluate their impact, and respond effectively to mitigate any adverse effects on their business. You can never be too prepared, and having a plan makes decision-making easier when political instability affects your business. [post_title] => Political Risk Management: 7 Strategies for Navigating Uncertainty [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => political-risk-management [to_ping] => [pinged] => [post_modified] => 2023-10-10 22:19:49 [post_modified_gmt] => 2023-10-10 22:19:49 [post_content_filtered] => [post_parent] => 0 [guid] => https://marketing-staging.quorum.us/?post_type=resources&p=11110 [menu_order] => 0 [post_type] => resources [post_mime_type] => [comment_count] => 0 [filter] => raw ) ) [post_count] => 1 [current_post] => -1 [before_loop] => 1 [in_the_loop] => [post] => WP_Post Object ( [ID] => 11110 [post_author] => 43 [post_date] => 2023-10-10 22:19:49 [post_date_gmt] => 2023-10-10 22:19:49 [post_content] => When Apple unveiled the new iPhone 15 earlier in September, they touted the shift to a USB-C port as an advancement that allows users to use a single cord to charge all their devices. While this sounds great, it isn't anything new — most iPhone competitors switched to USB-C around 2016. Why did it take Apple so long to switch to the "universally accepted standard?" Well, they had no choice. The European Union made the choice for them when they passed a law requiring common plugs by 2024. In other words, Apple had to change to USB-C if they wanted to continue selling their devices in Europe. This is just one of many examples of companies that had to make a shift in their product or service because of legislative change. That is why it is paramount for companies to prepare for political changes that could impact their business. Apple most likely anticipated this would happen eventually, and they were able to shift their design, manufacturing, and supply chain needs to ensure business continuity. Preparing for changes in the political landscape is what we call political risk management. In this article, we’ll cover the six steps of a successful political risk management strategy:

What is Political Risk Management?

Political risk management (PRM) is how organizations anticipate, identify, and respond to political changes that affect their day-to-day operations. Political risk management is often associated with international relations, but the same strategies can be applied to domestic affairs. Political risks come in many forms. The most obvious are legislative or regulatory changes, like in the case of Apple. Common legislative issues associated with political risks include tax, employment, and environmental protection laws. Acts of terrorism and war are also political risks — take, for example, the war in Ukraine's impact on oil prices across the globe in 2022. But political risks are not always so dramatic — they can be as nuanced as how an influential politician talks about your business, like when former President Trump tweeted about Toyota moving production to Mexico. Having a political risk management strategy in place means your organization is anticipating and ready to spring into action at a moment's notice.

Examples of Political Risks

Here are some examples of times when companies had to change their business or product due to a shift in public policy:

• GDPR and Data Privacy: The European Union's General Data Protection Regulation (GDPR) came into effect in 2018, imposing strict rules on how companies collect, store, and use personal data. Many companies, including tech giants like Facebook and Google, had to make significant changes to their data handling and privacy policies to comply.
• Automotive Emissions Standards: Governments worldwide have imposed stricter emissions standards to combat air pollution and climate change, pushing automakers to invest in cleaner technologies, including electric and hybrid vehicles.
• Single-Use Plastics Ban: Several countries and cities have introduced bans or restrictions on single-use plastics, such as bags, straws, and cutlery, leading companies to develop and promote alternative, eco-friendly products.
• Trans Fat Ban: Due to health concerns, many countries have banned or restricted the use of artificial trans fats in food products. Food manufacturers had to reformulate many products to remove or reduce trans fats.
• Net Neutrality: In countries where net neutrality regulations have been implemented, internet service providers have had to adjust their business models and practices to comply.
• Banking and Financial Regulations: After the 2008 financial crisis, many countries introduced stricter regulations for banks and financial institutions (e.g., the Dodd-Frank Wall Street Reform and Consumer Protection Act in the U.S.). This led to significant changes in the operations, risk management, and transparency practices of many financial institutions.
• Pharmaceuticals and Clinical Trials: Regulatory changes and government action often impact how pharmaceutical companies conduct clinical trials, market their products, and disclose information to the public.

Steps of a Political Risk Management Strategy

1. Identify Potential Political Risks

The first step in creating a political risk management strategy is identifying potential risks. At this stage, the more risks you can identify, the better. The goal is to eliminate or minimize blind spots. Look at the examples above and consider similar changes that could affect your business. As an exercise, look up and down your supply chain and think of everything that could go wrong. What happens if something happens in the country where you get your source materials? What about shipping and receiving? Next, think about all the people involved in your operation. Don’t just think about employees —  think about vendors, shareholders, and consumers. Are there any political risks related to them?

2. Evaluate Potential Impact

Once you have identified potential political risks, the next step is to evaluate their potential impact on your organization. For example, a change in tax laws could have an immediate financial impact on your organization, while a shift in trade policies could have a more gradual effect over time. It's essential to assess the probability and severity of each potential risk to prioritize them appropriately.

3. Develop an Early Warning System

To effectively manage political risks, organizations need an early warning system that alerts them when a threat arises. Your warning system should involve monitoring state, federal, and international legislation, listening to news and social media, staying connected with industry associations and government agencies, or even hiring external consultants who specialize in political risk analysis. Corporations large and small use Quorum for an early warning system. Quorum gives public affairs professionals tools to create alerts when their political risks are mentioned in legislation, news, and even social media. For example, if your organization is closely connected to oil drilling in Texas, you could set up an alert anytime a member of the Texas state legislature mentions the words “oil” or “drilling.” Sometimes your keywords won’t be so obvious. That was the case when Destinations International spotted language trends among people who supported budget cuts for tourism in Florida. By tracking dialogue, they noticed that terms like “picking winners and losers” were common. Using this information, they were able to build a more effective early warning system. Read their full story.

4. Organize Your Political Risk Task Force

At this point, it is time to bring in additional team members and identify who needs to be notified when problems arise. For example, who is in charge of monitoring political risks at a local level? And who should they alert when they spot a potential problem? Who is in charge of political risks at the federal or international levels? This step is a lot like building a business continuity plan and should include similar elements like step-by-step procedures and flow charts outlining the chain of command. Maintaining a centralized issue management system to store valuable information like SOPs and talking points can be helpful — in Quorum some teams create educational dashboards for this. Preferably, this system is paired with your early warning system. Collaboration is a core part of Quorum and one reason it is great for political risk management. Teams can set up alerts surrounding specific keywords. When something pops up, users can tag their team members or leave comments for everyone else to see.

5. Maintain Stakeholder Relationships

An oft-overlooked component of political risk management, and public affairs in general, involves maintaining relationships with stakeholders, including government officials. Proactively engaging lawmakers allows organizations to act more quickly when situations arise — as opposed to trying to form new relationships in a time of need.

Related: Importance of a Policy Reputation Calendar and How to Make One

When it comes to political risks related to multinational organizations, it makes sense to maintain strong relationships with members of the House Ways and Means and the Senate Finance Committees. Or, if your organization has a strong impact on the environment, you might want to spend more time with members of the Agriculture or Energy and Commerce Committees. A stakeholder management tool like Quorum helps teams track engagements with government officials and other stakeholders and leave notes about meetings to create a single source of truth. On top of that, Quorum comes equipped with a database of lawmakers and their staffers — making outreach a breeze.

6. Proactively Mitigate Political Risks

The goal of PRM is not just to identify and prepare for political risks but also to mitigate them. Mitigation can involve everything from lobbying to prevent unwelcome laws to considering different types of political risk insurance to protect your business. Political risk insurance protects against political shifts that could cause significant financial loss. If you’re operating in places of political instability, insurance will help you, and your shareholders, sleep better at night. In some cases, organizations may even adjust their operations or exit markets altogether in response to political risks. Overall, the goal of mitigating risks is to reduce your liabilities wherever possible. When reducing your liabilities isn’t possible, then having a backup plan in place is the next best thing.

7. Respond Quickly

Once a political risk becomes a reality, it's essential to respond quickly and effectively. If you identified the threat early using a solid detection system, your response efforts might include meetings with key stakeholders and government officials in attempts to slow down new legislation. If the issue is already part of the public discourse, your response might involve executing your crisis communication plan. You might even want to engage your grassroots supporters to make your voice even louder.

---

Political risks are an inevitable part of doing business. From changes in legislation to global conflicts and other political events, organizations must prepare to navigate these challenges to maintain their operations and protect their bottom line. By implementing a political risk management strategy, organizations can identify potential risks, evaluate their impact, and respond effectively to mitigate any adverse effects on their business. You can never be too prepared, and having a plan makes decision-making easier when political instability affects your business. [post_title] => Political Risk Management: 7 Strategies for Navigating Uncertainty [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => political-risk-management [to_ping] => [pinged] => [post_modified] => 2023-10-10 22:19:49 [post_modified_gmt] => 2023-10-10 22:19:49 [post_content_filtered] => [post_parent] => 0 [guid] => https://marketing-staging.quorum.us/?post_type=resources&p=11110 [menu_order] => 0 [post_type] => resources [post_mime_type] => [comment_count] => 0 [filter] => raw ) [comment_count] => 0 [current_comment] => -1 [found_posts] => 1 [max_num_pages] => 0 [max_num_comment_pages] => 0 [is_single] => 1 [is_preview] => [is_page] => [is_archive] => [is_date] => [is_year] => [is_month] => [is_day] => [is_time] => [is_author] => [is_category] => [is_tag] => [is_tax] => [is_search] => [is_feed] => [is_comment_feed] => [is_trackback] => [is_home] => [is_privacy_policy] => [is_404] => [is_embed] => [is_paged] => [is_admin] => [is_attachment] => [is_singular] => 1 [is_robots] => [is_favicon] => [is_posts_page] => [is_post_type_archive] => [query_vars_hash:WP_Query:private] => 75709e839f585ea42455b28128db34c3 [query_vars_changed:WP_Query:private] => [thumbnails_cached] => [allow_query_attachment_by_filename:protected] => [stopwords:WP_Query:private] => [compat_fields:WP_Query:private] => Array ( [0] => query_vars_hash [1] => query_vars_changed ) [compat_methods:WP_Query:private] => Array ( [0] => init_query_flags [1] => parse_tax_query ) )

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