Given the present climate, anything is possible. Political risk involves not only political fragmentation but also economic disintegration. One example is Thailand, where rapid economic development, using a free-market model, has created a system that has outgrown the service infrastructure that government traditionally provides. Reports come from Bangkok of inadequate waste-water treatment, polluted canals, and one of the world's highest H.I.V. infection rates among its prostitute population. Bangkok is also bedeviled by monster traffic jams.
Political risks force a re- assessment of investments by organizational risk managers.
Canada was boring beyond belief, but there was a brief flurry of excitement when Quebec voted on whether to secede and it came out just about even. After that, Canada immediately resumed being as boring as ever. It was particularly stimulating in that the preponderance of discussion related to the future of the risk management process within a organization, leaving only modest comment about the insurance market. The ultimate risk manager is the managing director and every employee carries some responsibility for the discipline. It does not need to report to a single czar.