The rising problems of PEPs


Political risk involves the exposure of an institution to events in a country that are likely to affect its operations. The more countries in which the institution operates, the greater the political risk. The risk is multiplied where countries are unstable, or likely to be so. Banks have built global networks believing that political risk would decline as economic globalisation increased. Recent developments suggest such confidence is waning.

These have occurred on two fronts. The unexpected sc

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