The impact on business of political uncertainty in countries
that are seized by revolution can be substantial—so much so in fact that CEO’s
and board directors are motivated to avoid the uncertainty itself. I submit
that business analysts of political risk tend unwittingly to routinely overstate
the uncertainty arising from incoming U.S. presidential administrations. If I
am correct in this claim, CEO’s and board directors pay too much heed to
political uncertainty itself in the making of major strategic decisions
involving operations in the American context.
