We explore a long standing prediction in the international business literature that managers' subjective perceptions of political risk – not just the level of risk – are important for how firms manage political risk. The importance attributed to political risk by corporate executives has...

We show that internationally diversified portfolios carry sizeable political risk premia. We use a tail-risk portfolio selection model to obtain political efficient frontiers from skewed return distributions and manage political risk, and design an inference test to draw conclusions. We find...

Introduction : beers in Bangkok -- The softness and hardness of political risk -- First principles, second thoughts : production, exchange and politics -- Grey swans take flight : the fall and rise of sovereign risks -- Coffee, data and other drugs : the explosive rise of new risks -- The craft...