Political Risk in Asia Pacific

The Asian economic crisis showed that countries are vulnerable to unexpected changes in political sentiment. This is forcing business and government to refine their approaches to decision-making and planning. Business often takes the political environment for granted, even though Asian events demonstrate the need to incorporate political risk into strategic planning. Scenario planning, which allows a company or country to develop alternative futures, is one way for decision-makers to prepare for the unpredictable. The Asia Pacific is ideal for using this tool because the convulsions - and the recovery - defied the expectations of most observers, and tested the limits of corporate and government planning. While Canadian businesses will not be able to eliminate risks through scenario planning, by being prepared they can breathe easier.

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