Political risk management best practice: The energy sector

2006 ◽  
Vol 67 (1) ◽  
pp. 143-146
2007 ◽  
Vol 19 (4) ◽  
pp. 82-93 ◽  
Author(s):  
Ekaterina E. Emm ◽  
Gerald D. Gay ◽  
Chen-Miao Lin

Author(s):  
Ye. Bolotina ◽  
◽  
O. Shubna ◽  
A. Borodai ◽  
N. Steshenko ◽  
...  

The article considers the specifics of the functioning of TNCs, their current activities in the investment market. TNCs are currently one of the most important actors in international economic relations. The investment activity of transnational corporations has a direct impact on the balance of payments, production volumes, foreign trade turnover, employment, and the competitiveness of the host economy. The key features of political risk management of TNCs are identified and characterized. The political risks of TNCs are related to their interpretation, classification and methods. The means of reducing the degree of risk include: risk avoidance, retention, risk transfer. Ways to reduce the degree of risk include: diversification, acquisition of additional information, limitation, insurance, hedging. It has been proven that the main advantage of risk communications as an effective ancillary way to manage the political risks of TNCs at the state level, especially in the early stages of public policy making, is that it allows decision makers to better and timely inform stakeholders about risks. and to effectively exchange data between different parts of the public administration system, including effective mitigation measures. The main directions for TNC investment in 2018 are analyzed. The negative consequences of TNCs and ways to overcome them are identified.


2011 ◽  
Vol 2 (3) ◽  
pp. 63-80
Author(s):  
Mike Brownsword ◽  
Rossi Setchi

Observations made while working with industry and government organisations have shown a number of issues with the implementation of current risk management best practice. A major issue in many cases is the lack of pragmatism associated with the risk management process and the need for a more formalised approach to risk management. In this paper, the authors propose and validate a multi-view approach to defining the processes required to carry out risk management. The formalised approach proposed includes a definition of risk, an ontology, a set of processes, and a pragmatic methodology, which shows an application of these processes enabling pro-active management of change. The ability of the processes to be applied to different types of risk has been demonstrated through a case study highlighting health and safety issues. Within the current engineering and economic climate this logical approach provides a visualisation which is consistent, repeatable, view based, and pragmatic.


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