The Fat Tail: The Power of Political Knowledge for Strategic Investing

The Fat Tail: The Power of Political Knowledge for Strategic Investing

by Ian Bremmer, Preston Keat

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As Ian Bremmer and Preston Keat reveal in this innovative book, volatile political events such as the 2008 Georgia-Russia confrontation--and their catastrophic effects on business--happen much more frequently than investors imagine. On the curve that charts both the frequency of these events and the power of their impact, the "tail" of extreme political instability is not reassuringly thin but dangerously fat. Featuring a new Foreward that accounts for the cataclysmic effects of the 2008 financial crisis, The Fat Tail is the first book to both identify the wide range of political risks that global firms face and show investors how to effectively manage them. Written by two of the world's leading figures in political risk management, it reveals that while the world remains exceedingly risky for businesses, it is by no means incomprehensible. Political risk is unpredictable, but it is easier to analyze and manage than most people think. Applying the lessons of world history, Bremmer and Keat survey a vast range of contemporary risky situations, from stable markets like the United States or Japan, where politically driven regulation can still dramatically effect business, to more precarious places like Iran, China, Russia, Turkey, Mexico, and Nigeria, where private property is less secure and energy politics sparks constant volatility. The book sheds light on a wide array of political risks--risks that stem from great power rivalries, terrorist groups, government takeover of private property, weak leaders and internal strife, and even the "black swans" that defy prediction. But more importantly, the authors provide a wealth of unique methods, tools, and concepts to help corporations, money managers, and policy makers understand political risk, showing when and how political risk analysis works--and when it does not. "The Fat Tail delivers practical wisdom on the impact of political risk on firms of every description and valuable advice on how to use it. Ian Bremmer and Preston Keat offer innovative thinking and useful insight that will help business decision-makers find fresh answers to questions they may not yet know they have." --Fareed Zakaria, best-selling author of The Post-American World "Political risk has become increasingly complex, and The Fat Tail provides a truly new way to quantitatively assess it in established and emerging markets. It is essential reading for any CEO with multinational interests." --Randall Stephenson, Chairman, CEO and President, AT&T Inc. "Should be essential reading for anyone involved in international business even--perhaps especially--in places that seem politically stable." --Bill Emmott, former editor-in-chief of The Economist

Product Details

ISBN-13: 9780199752881
Publisher: Oxford University Press
Publication date: 05/13/2010
Sold by: Barnes & Noble
Format: NOOK Book
Sales rank: 925,857
File size: 2 MB

About the Author

Ian Bremmer is the President of Eurasia Group and author of The J Curve: A New Way to Understand Why Nations Rise and Fall. He is a contributing editor for Foreign Policy and The National Interest. Preston Keat is Director of Research at Eurasia Group. He presently teaches at Columbia University's School of International and Public Affairs.

Table of Contents

Introduction Part 1: The Universe of Political Risks Chapter 1: Geopolitical Risks: Risks rising from great power rivalries and international wars Chapter 2: Terrorism: Risks arising from terrorist groups Chapter 3: Capital Markets: Risks from government's macroeconomic policies (defaults, capital controls) Chapter 4: Expropriations: Risks from a government's takeover of private property Chapter 5: Regulatory Risks from government's changing the rules of the game Chapter 6: Domestic instability: Risks from government weakness and potential for internal strife Chapter 7: Unknown Risks: "Black swans," "known unknowns" and events that cannot be necessarily conceived Part II: Analysis and Mitigation of Risks Chapter 8: Methodology and Social Sciences Chapter Chapter 9: Reporting of Risks Chapter 10: Mitigation of Risks Conclusion New Afterword for the Paperback Edition

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The Fat Tail: The Power of Political Knowledge in an Uncertain World (with a New Preface) 4 out of 5 based on 0 ratings. 1 reviews.
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