Sunday, March 22, 2009

Political risk

Maybe you know that I work in a political risk research and consulting company. Political risks lead to economically inefficient market outcomes. Legislation passed under the influence of an interest group or selective, untransparent and unfair implementation of rules and regulations create political risk. In an environment with high political risk, the outcome of an endeavour depends not only on your talent and effort, but also on the whims and wishes of the people in the system within which you are operating. To reach the outcome you'd like, you have to factor political risk into your equation (and pay us). This is what we do our research and consult our clients on. Too bad, but real world.

The events of the past week made me realize that political risk is present in all systems, in all organizations, including ours. We all have to work around relationships, the hierarchy, egos and pure human drama to get the outcomes we want. And sometimes, all these things won't allow us to get the outcomes we want.

One more thing that must have been obvious to all but myself.

No comments: