Assessing Geopolitical Risk: A Multi-Level Approach for Top Managers of Multinationals

Abstract

Geopolitical risk is a major concern for top managers of multinationals around the globe. However, top managers often find it challenging to assess how geopolitical risk can impact their multinational’s operations. Hence, this article offers top managers a multi-level approach for the holistic assessment of geopolitical risk that can help them identify their multinational’s degree of exposure. This multi-level approach integrates insights of over one hundred top managers of multinationals, and involves conducting a tailored examination at the supranational, international, national, industry, and firm levels of analysis to factor geopolitical risk more effectively into strategic decision making.