Managing Political Risks for Multinational Companies

This course focuses on assessing and responding to political risks that were identified in a multinationals’ host market. The students will get acquainted with management tools that help structure and prioritize different political risks by assessing the political risk factors’ probabilities to materialize and by evaluating the potential impact of the political risk factors on the multinational’s operations. In a next step, the course will introduce strategies to manage political risks according to their relevance for the multinational firm. The students will be equipped with the necessary theoretical background to understand political risk assessment and management, and at the same time, students will have the opportunity to apply their knowledge to case studies, which will be dealt with in the course.

Mode of delivery

face to face



Recommended or required reading and other learning resources/tools

Alcantara, Lailani Laynesa; Mitsuhashi, Hitoshi (2013): Dynamics of entering politically risky foreign markets. In: Management Research Review 36 (6), S. 580–595. Jensen, Nathan M. (2008): Political Risk, Democratic Institutions, and Foreign Direct Investment. In: The Journal of Politics 70 (4), S. 1040–1052. Jensen, Nathan M.; Malesky, Edmund; Weymouth, Stephen (2013): Unbundling the Relationship between Authoritarian Legislatures and Political Risk. In: British Journal of Political Science 44, S. 655–684. Leitner, Johannes (2017): Political risk and international business: Where they interfere, consequences, and options. In: Johannes Leitner und Hannes Meissner (Hg.): State Capture, Political Risks and International Business. Cases from Black Sea Region Countries. 1. Ed. London & New York: Routledge, S. 26–40. McKellar, Robert (2010): A short Guide to Political Risk. Farnham, Gower. Miller, Kent D. (1992): A Framework for Integrated Risk Management in International Business. In: Journal of International Business Studies 23 (2), S. 311–331. Miller, Kent D. (1993): Industry and Country Effects on Manager's Perceptions of Environmental Uncertainty. In: Journal of International Business Studies 24 (4), S. 693–714. van Wyk, Jay (2010): POLITICAL SOURCES OF INTERNATIONAL BUSINESS RISK: AN INTERDISCIPLINARY FRAMEWORK. In: Journal of International Business Research 9 (1), S. 103–119. Werner, Steve; Brouthers, Lance Eliot; Brouthers, Keith D. (1996): International risk and perceived environmental uncertainty: The Dimensionality and Internal Consistency of Miller's Measure. In: Journal of International Business Studies 27 (3), pp. 571

Planned learning activities and teaching methods

Lecture, group work and presentations, discussions and reflections

Assessment methods and criteria

Participation, presentations, case studies, exam

Prerequisites and co-requisites

Pass prior course "Analyzing Political Risks for Multinational Companies"


Degree programme

European Economy & Business Management (Bachelor)



ECTS Credits


Language of instruction




Academic year



4 SS



Learning outcome

Upon completion of this course, the successful candidate will have acquired the competences to systematically manage political risks for multinational companies. In particular, the student will be capable of: (2) Assessing the probability and impact of different political risks. (3) Prioritizing different political risks according to their relevance. (4) Designing strategies to manage political risks.

Course code