<abstract xml:lang="en" xmlns="http://www.w3.org/1999/xhtml"><p>The paper explores the risks, associated with government actions, which reduce the value of the company, in other words, a political risk. The purpose of this research is to determine the theoretical, institutional, regulatory management and implemented activities of political risks in different countries (the USA, the UK, France, Japan and Germany). The aim of this paper is the analysis of the characteristics of political risks, the analysis and the characteristics of the risk of the insurance policy from the standpoint of global, regional and state agencies and private insurers as well, determining the interdependence of political risks and country risks. The analysis begins by reviewing different ways of entering foreign markets (exports, foreign direct investment, contractual agreements and establishment of subsidiaries), all of which imply exposure to political risk. After that, political risk and exposure of its basic elements are defined, as well as methods that are applied in the assessment and the management of political risks. This paper concludes with an overview of political risk insurance coverage and sums insured in selected countries, and how political risk is underwritten and priced.</p></abstract>

The paper explores the risks, associated with government actions, which reduce the value of the company, in other words, a political risk. The purpose of this research is to determine the theoretical, institutional, regulatory management and implemented activities of political risks in different countries (the USA, the UK, France, Japan and Germany). The aim of this paper is the analysis of the characteristics of political risks, the analysis and the characteristics of the risk of the insurance policy from the standpoint of global, regional and state agencies and private insurers as well, determining the interdependence of political risks and country risks. The analysis begins by reviewing different ways of entering foreign markets (exports, foreign direct investment, contractual agreements and establishment of subsidiaries), all of which imply exposure to political risk. After that, political risk and exposure of its basic elements are defined, as well as methods that are applied in the assessment and the management of political risks. This paper concludes with an overview of political risk insurance coverage and sums insured in selected countries, and how political risk is underwritten and priced.

Insurance and Management of Political Risk Exposure in Developed Economies and Serbia

Department in Novi Sad, Faculty of Economics, Subotica

South East European Journal of Economics and Business

The paper explores the risks, associated with government actions, which reduce the value of the company, in other words, a political risk. The purpose of this...

Insurance and Management of Political Risk Exposure in Developed Economies and Serbia

Published Online: Jan 27, 2012

Page range: 79 - 93

DOI: https://doi.org/10.2478/v10033-011-0018-7

Keywords
political risk management, elements of political risk, national export-import banks

This content is open access.

Insurance and Management of Political Risk Exposure in Developed Economies and Serbia

Published Online: Jan 27, 2012

Page range: 79 - 93

DOI: https://doi.org/10.2478/v10033-011-0018-7

Keywordspolitical risk management, elements of political risk, national export-import banks

This content is open access.

Keywords
political risk management, elements of political risk, national export-import banks