“In the boardroom discussions on globalization risk assessments are underestimated. The discussion about onshore, nearshore or offshore locations is too much focused on costs and supply chain issues. But a full assessment of all types of risks has to be incorporated in the discussion as well”, says René Buck, CEO of Buck Consultants International.

Buck Consultants International developed a Risk Assessment Method of countries, regions and locations around the world in which 22 different risks are identified, grouped into six larger categories

  • Political risks such as government stability/democracy, political conflicts, religious & ethnic tensions.
  • Economic risks, including the development of the economy, inflation forecasts and balance of government budgets.
  • Financial risks are a.o. exchange rate (stability), foreign debts and financial ratings.
  • Transparency risks consist for example of corruption, bureaucracy and bribery of public officials.
  • Legal risks refer to permits, red tape and patent infringements.
  • Last but not least, natural disaster risks such as climatic and hydrological catastrophes or meteorological and geophysical events.

business model

René Buck is very pleased with the huge interest of the international business community in BCI’s Risk Assessment Reports. “C-level executives recognize the danger of a too Western-orientated approach. A full risk assessment of potential investment locations is a very valuable and realistic contribution to a company’s global footprint decision process”.

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