Research on Political Risk


By producing research papers and analyses on a sound scientific basis we, at the Competence Centre for Black Sea Region Studies, aim at contributing to a more comprehensive appreciation of the Black Sea Region.

Political Risks for the companies in the Black Sea Region

International operations are per se associated with additional risks for companies. A new environment different from the well-known home-market combined with a political and institutional framework the organization is less acquainted with, makes international business more complex, and riskier. Political risk is a concept that covers those risk factors for international companies that root in the political and institutional environment of a country but have immediate consequences on the company’s Performance.

Risk factors for companies in the Black Sea Region

Companies find themselves exposed to instable political and institutional frameworks in post-socialist transition countries which are difficult to forecast and hence, bear risks for them. Thus, clientelism, corruption, legal uncertainty, deficient bureaucracy, patriarchal loyalty relations and expectations jeopardize both, compliance standards and business opportunities.

Research knowledge for companies

Within this context our expertise at the Competence Centre comes into play. It is our task to conceptualize and assess existing interrelated connections in all their complexity first. Secondly, in response to the results, we develop coping strategies for companies to facilitate their economic activity in these regions. In this process, we teach tomorrow’s executives to assess political risk and in turn, companies can profit directly from the offered recent research.