Subject Code
MM6511
Subject Title
Crisis and Political Risk Management
Level
6
Credit(s)
3
Mode of Study
Lecture
Normal Duration
1 Semester
Pre-requisite(s)
Nil
Exclusion(s)
Nil
Consecutive Subjects
Nil
Assessment
Continuous Assessment
30 Hours
60%
- Case Synthesis
Minimum Pass Grade
Examination
40%
Continuous Assessment
Examination
D
D
LEARNING OUTCOMES
On successfully completing of this subject, students will be able to:
1. Understand the complex political forces affecting business organizations;
2. Apply environmental scanning and political risk analysis techniques for issue identification
and issues management with particular focus on political events;
3. Apply crisis management concepts and tools for surveillance, prevention, early detection
and containment of different types of crises.
LEARNING / TEACHING APPROACH
Models, analytical tools and cases will be introduced through lectures. Each syndicate group
will be required to synthesise a number of cases, applying political risk assessment and crisis
management techniques in the analysis of a variety of issues affecting organizations.
KEYWORD SYLLABUS
Crisis Management
identification of crisis clusters, surveillance systems, the crisis management team, contingency
plans, crisis communication, chain of command during crisis, alert systems.
Public policy/political environment as a dimension of management
The concept and measurement of political risk; political competitiveness, political stability and
business investments; impact of public policy on corporate structure, policy and on top
management
Environmental scanning, issue identification and issues management
Scanning, forecasting and evaluation; Corporate political assessment activities
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Public policy models and public policy formation process in Hong Kong, China and
selected Asian-Pacific countries
 Elite/Mass Model
 The Group Model
 The Institutionalist Model
 The Rationalist, Incrementalist, and Mixed Scanning Models
 Public Choice Models
 The Prince System
Applying political risk models and techniques to selected issues
 Risk adjusted discount rate
 The Economist Model
 The Business Environment Risk Intelligence Model (BERI)
 The Political Risk Services Model
 Moody’s Model
 Standard and Poor’s Model
INDICATIVE READING
Blank, S., Assessing the Political Environment : An Emerging Function in International
Companies, The Conference Board, New York, 1990.
Cantor R., Packer F., "Determinants and Impact of Sovereign Credit Ratings" Global Risk
Assessments Book 4, Global Risk Assessments Inc., Riverside, 1997, pp. 65-100.
Chong, J. K. S. and M.-K. Nyaw (2002). "Are Hong Kong companies prepared for
crisis?" Disaster Prevention and Management, 11,1:12
Coplin, William D, and Michael K O'Leary Political Analysis through the Prince System Policy
Studies Association.
Dunleavy, P., Democracy, Bureaucracy & Public Choice, Harvester Wheatsheaf, London
1992.
Erb, C. B., Harvey, C. R. & Viskanta, T. E., "Political Risk, Economic Risk and Financial Risk",
Financial Analysts Journal, November/December 1996, pp. 29-46.
Howell, L. & Chaddick, B., "Models of Political Risk for Foreign Investment and Trade" The
Columbia Journal of World Business, Fall 1994, pp. 70-91.
Howell, L., "Politically-Based Losses to Foreign Investors : Concept and Measurement" in Jerry
Rogers (ed.) Global Risk Assessments Book 4, Global Risk Assessments Inc., Riverside, 1997,
pp. 43-64.
Nairne, S., "Political Risk on Shifting Sands : An Export Credit Agency's View" in Jerry Rogers
(ed.) Global Risk Assessments Book 4, Global Risk Assessments Inc., Riverside, 1997, pp. 2442.
Nye, R., "Sovereign Credit Ratings: A Subjective Assessment" in Jerry Rogers (ed.) Global Risk
Assessments Book 4, Global Risk Assessments Inc., Riverside, 1997, pp. 101-118.
Pearson, C. M. and J. A. Clair (1998). "Reframing Crisis Management." Academy of
Management Review 23(1): 59-76.
Pious, R. M. (2001). "The Cuban Missile Crisis and the Limits of Crisis Management." Political
Science Quarterly 116(1): 81-105.
Stapenhurst, F., Political Risk Analysis around the North Atlantic. St. Martin Press, New York,
1992.
Shrivastava, P., I. I. Mitroff, et al. (1988). "Understanding Industrial Crises." Journal of
Management Studies 25(4): 285-303.
Date
December 2008
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