Ten Critical Steps for Risk Managers Essay Example | Topics and Well Written Essays - 750 words - 2

Ten Critical Steps for Risk Managers - Essay Examplegenus genus Argentina is one of the Latin American countries which have a high political risks associated with international business. These risks affect the way international business is done between Argentina and the rest of the world.According to World buzzword (2001), managing political risk and other forms of risks associated with international business is something that can be very difficult for businesses. However, experts such as Thomas Cook (2012) have provided utilitarian information regarding the ways in which international businesses can address these issues. For a country such as Argentina, the main issue for international business nation to understand is the fact that this country is not stable politically. Countries which have not matured democratically such as Argentina have more and higher(prenominal) political risk and it is demand for businesses to be able to address these risks in a more serious way. The follo wing ten steps as developed by Cook can be used to manage political risk in Argentina. The first issue to for a manager to consider is selecting a risk redress firm which is suited to the insurance needs of the business. According to Cook (2012), it is absolutely necessary for a manager to know that the underwriters who they choose are conversant in political risks in the country. In this regard, choosing an insurance factor in Argentina allow concentrate on carrying for an insurance broker who critically understands the political risks in the country not only in theory but also in practice.... In buying insurance, it is always necessary to understand the nature and extent of the risk involved (Cook, 2012). In this regard, it will be increasingly necessary to understand the political risks involved in Argentina and then look for an insurance provider who will guarantee these risks. It will be necessary to look for an insurance provider who clearly understands these risks and w ho is able to look at the way in which the business can be shielded from this kind of risk. Thirdly, the manager should consider combining risk and covering them with one insurance policy. There are a number of risks associated with doing international business in Argentina and this will require combining risks when buying an insurance policy. In this regard, it will be necessary to understand the various risks which can be combined in order to make sure that the business is well protected. For instance, apart from political risks, there are other non-political risks which must be looked at in this regard, instead of having a different policy for each risk it could be useable to have one umbrella policy which will protect the business from all the risks. Fourth, constant communication about the contract after it has been put in place is also very important. This is because Argentinas political environment is very volatile and therefore the nature and extent of political risks in Ar gentina keep changing over time. Fifthly, constant review and update of the insurance contract is necessary because political risks can change with regard to which regime is in power and also depending on seasons such as the electioneering season. With a country which does not have a concrete public policy, the nature of the presidential term is purely