Corporate Guide to Navigating U.S. Political Risk

How to Use this Guide:

  • For Boards: Given that only 25% of corporate boards currently consider political risk in their decision-making, the “Board Oversight Checklist” provides crucial guidelines for incorporating U.S. political risk oversight. It includes key questions boards should address, outlines the information they should request from management, and identifies political activity decisions that require board-level attention.
  • For Company Management: Political risk can affect nearly every aspect of a company. This guide outlines five key steps for management to effectively handle U.S. political risks, along with the best practices expected by their boards. It addresses the need for a proactive approach to risk management, tailored to the specific industry, geography, and strategic context of the company.
  • For Institutional Investors: Like the companies they invest in, institutional investors must now integrate U.S. political risk into their own risk management strategies. This section provides questions for investors to discuss U.S. political risk with their investment managers and portfolio companies, helps manage alignment/misalignment considerations, and evaluates their oversight processes.