Reference no: EM133040323

Question: Choose one of your risk mitigation strategies and outline the strategy for your team.

Response:  

Political instability is very common in Latin America and can rapidly change. Political risk can affects a company's value. Through political insurance, which can offer coverage in the case of financial or asset loss as a result of political events, a company can mitigate political risks. Political risk insurance (PRI), give financial protection to businesses in the event of financial loses due to expropriation, political violence, the inability to convert currency, war, revolution, terrorism, labor strikes, and extortion.  

Once you have posted your strategy, using the critical elements of Section III of the final project, present a justification for your strategy to your committee. Your defense should cover the following:

• Identify the approximate costs and benefits associated with employing your risk management strategy.
• Explain how the risk management strategy considers cross-cultural differences.
• Explain how the risk management strategy accounts for the analyzed risk. Defend your strategy with appropriate examples and research.
• Present a contingency plan to be deployed should your risk management strategy prove ineffective.