Managing Micropolitical Risk: A Cross-Sector Examination

This article stresses the need for today's multinational firms to adopt their own political risk-assessment and risk-mitigation strategies. A comparative study of the energy, financial, and automobile sectors illustrates the need for all companies in these sectors to undertake comprehensive risk-assessment strategies. Risk-assessment models established by leading multinationals like British Petroleum, Bank of America, and General Motors are examined as examples that other companies in these sectors can build upon. The consistent micropolitical risk variables then lead to a proposed practical framework for examining sector-specific micropolitical risk. (C) 2006 Wiley Periodicals, Inc.