In this month’s copy of Infrastructure Investor Michael Wilkins, Managing Director of Infrastructure Finance at Standard & Poor’s Ratings Services, discusses geopolitical risk. Indeed, its definition is hard to pin down, but Wilkins proposes that “geopolitical risk is caused by tensions between different states and regional conflicts”.
While geopolitical risk may be difficult to define, it is even harder to forecast. This is why Wilkins warns against discounting this type of risk in developed markets – the current consensus being that geopolitical risk goes ‘hand in hand’ with emerging markets, such as China and Russia.
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