Session 4 IBP

Mitigating
Country Risks

​What are the general strategies to follow in the case of a risk?

Decision to be made for risk

Avoid

Mitigate

Transfer

Accept

There is no country on earth where risks do not exist.

​What is an example of mitigation strategy for political & legal risks?

Strategies for mitigating country risk

Political / Legal Risks

Political Risk Insurance (PRI)

• Trade coverages: the objective of

these coverages is to ensure that
goods are successfully shipped to a
destination

andthatpayment

is

received.

From

a few days

to

perhaps 2 years coverage.

• Investment coverages: ensure that

a business may be operated as
originally proposed under the terms
of an investment agreement, a joint
venture contract, or an agreement
with

the host

government.

Long

term.

​What are some comnon mitigation strategies for economic / financial risks?

Strategies for mitigating country risk

Economic / Financial Risk

Exchange rate

http://rmid-oecd.asean.org/project-risks-mitigation/risk-mitigation-instruments/commercial-risk-mitigation/exchange-rate-risk-mitigation/

​What are some examples of mitigation strategies for socio / cultural risks?

Strategies for mitigating country risk

Socio / Cultural Risk

Multi brand strategy with local

companies

Focus on local culture

and talent