When politics becomes a company risk
Statistics show that political risks have become one of the greatest risks that German companies fear. With the Funk political risk stress test, companies can get an overview of potential risks and prepare for them accordingly.
During the preparation phase of the stress test, a risk assessment is conducted, which defines the key risks and the countries to be considered. The experts at Funk work with the client to analyse country-specific risks and relevant risk scenarios. Using the RIMIKS risk simulation software, these scenarios are put in the context of the company’s planning.
After the workshop, companies know specifically how business figures will be affected if for example a plant in Tunisia fails or a supplier from Ukraine is no longer available. A recommendation catalogue in the final report provides possible measures for managing the risk. Preventative measures such as the development of contingency and crisis plans should also be added to the risk management mix.
If there are insurance solutions on the market, these are often relegated to property or credit insurance. And special cover does exist. ‘But the more acute the risk, the more difficult it is to get cover,’ says Hendrik Löffler. That’s why Funk always advises on effective preventative measures.