Integrating Social and Political Risk Into ROI Calculations

摘要

As was seen with the Gulf oil spill disaster, a failure to adequately incorporate social and political risk into financial decision making can have dire consequences and costs. To prevent similar situations in the future, corporate risk-management practices must integrate social and political risks in order to effectively manage real risks and improve the resource-allocation process. This can be accomplished by properly identifying risks, and then measuring, monetizing.