POLITICAL RISKS IN INTERNATIONAL BUSINESS: A STUDY ON THE EFFECTİVENESS OF RISK MANAGEMENT STRATEGIES AND CONTROL ACTIVITIES

Erhan Polat; İslam Altun; Mehmet Dabakoğlu

Article Details

POLITICAL RISKS IN INTERNATIONAL BUSINESS: A STUDY ON THE EFFECTİVENESS OF RISK MANAGEMENT STRATEGIES AND CONTROL ACTIVITIES

Authors:

Erhan Polat | İslam Altun | Mehmet Dabakoğlu

Publisher:

Inonu University

Main Topics:

Uluslararası İşletmecilik | İç Kontrol | Uluslararası Risk Yönetimi

Journal:

İnönü Üniversitesi Uluslararası Sosyal Bilimler Dergisi Vol.13 Issue 2, pp.494-517

Document Type:

Article

Publication Date:

12/2024

Document Language:

Turkish

Document ID (Org No.):

2001337128

pISSN:

2147-0936

Keywords:

Abstract:

 In the contemporary era, political risks have emerged as a pivotal factor influencing global trade. The necessity for the development of effective responses to political risks in business activities is driven by a number of factors, including power struggles between countries, fluctuations in social events, the formation of international agreements and the intensification of competition. In general, methods for dealing with risks have been developed, and these methods are also applied to political risks. In this context, risk management strategies and control activities, which are designed to minimise the negative consequences of risks, assume greater importance. Control activities encompass the detection, preventive and corrective measures that reinforce the internal control system and are devised to address the risks identified through risk assessment. This study examines the relationship between the identification of political risks, risk management strategies and control activities among member companies of the Southeastern Anatolian Exporters Association GAIB. A total of 274 enterprises operating in different sectors participated in the study. The data obtained through questionnaires were analysed using the SPSS package programme. The results of the analysis indicated that there is no significant relationship between political risks and risk management strategies and control activities. This suggests that firms do not adequately consider political risks when determining their risk management strategies. The study concluded that the implementation of control activities is necessary to enhance the efficacy of risk management strategies.

 In the contemporary era, political risks have emerged as a pivotal factor influencing global trade. The necessity for the development of effective responses to political risks in business activities is driven by a number of factors, including power struggles between countries, fluctuations in social events, the formation of international agreements and the intensification of competition. In general, methods for dealing with risks have been developed, and these methods are also applied to political risks. In this context, risk management strategies and control activities, which are designed to minimise the negative consequences of risks, assume greater importance. Control activities encompass the detection, preventive and corrective measures that reinforce the internal control system and are devised to address the risks identified through risk assessment. This study examines the relationship between the identification of political risks, risk management strategies and control activities among member companies of the Southeastern Anatolian Exporters Association GAIB. A total of 274 enterprises operating in different sectors participated in the study. The data obtained through questionnaires were analysed using the SPSS package programme. The results of the analysis indicated that there is no significant relationship between political risks and risk management strategies and control activities. This suggests that firms do not adequately consider political risks when determining their risk management strategies. The study concluded that the implementation of control activities is necessary to enhance the efficacy of risk management strategies.

 In the contemporary era, political risks have emerged as a pivotal factor influencing global trade. The necessity for the development of effective responses to political risks in business activities is driven by a number of factors, including power struggles between countries, fluctuations in social events, the formation of international agreements and the intensification of competition. In general, methods for dealing with risks have been developed, and these methods are also applied to political risks. In this context, risk management strategies and control activities, which are designed to minimise the negative consequences of risks, assume greater importance. Control activities encompass the detection, preventive and corrective measures that reinforce the internal control system and are devised to address the risks identified through risk assessment. This study examines the relationship between the identification of political risks, risk management strategies and control activities among member companies of the Southeastern Anatolian Exporters Association GAIB. A total of 274 enterprises operating in different sectors participated in the study. The data obtained through questionnaires were analysed using the SPSS package programme. The results of the analysis indicated that there is no significant relationship between political risks and risk management strategies and control activities. This suggests that firms do not adequately consider political risks when determining their risk management strategies. The study concluded that the implementation of control activities is necessary to enhance the efficacy of risk management strategies.

 Günümüz dünyasında, ticaret üzerinde etkili olan temel faktörler arasında politik riskler giderek daha önemli hale gelmektedir. Ülkeler arasındaki güç mücadelesi, toplumsal olaylar, uluslararası sözleşmeler ve yoğun rekabet ortamı, ticari faaliyetlerde politik risklere yönelik etkili tepkilerin geliştirilmesini zorunlu kılmaktadır. Genel olarak, risklerle başa çıkma metotları geliştirilmiş olup, bu metotlar politik riskler için de uygulanmaktadır. Risk yönetim stratejileri ve risklerin olumsuz sonuçlarını azaltmaya yönelik kontrol faaliyetleri bu bağlamda önem kazanmaktadır. Kontrol faaliyetleri, iç kontrol sistemine destek veren ve risk değerlendirmesi sonucunda ortaya çıkan risklere karşılık verilmek üzere oluşturulan tespit edici, önleyici, düzeltici faaliyetleri kapsamaktadır. Bu çalışmada, Güneydoğu Anadolu İhracatçı Birlikleri GAİB üyesi firmaların politik risklerinin tespiti, risk yönetim stratejileri ve kontrol faaliyetleri arasındaki ilişki incelenmiştir. Araştırmaya, farklı sektörlerde faaliyet gösteren 274 işletme katılım sağlamıştır. Anket yoluyla elde edilen veriler SPSS paket program yoluyla analiz edilmiştir. Analiz sonuçlarına göre, politik riskler ile risk yönetim stratejileri ve kontrol faaliyetleri arasında anlamlı bir ilişki bulunmadığı sonucuna ulaşılmıştır. Bu durum, firmaların risk yönetim stratejilerini belirlerken politik riskleri yeterince dikkate almadığını göstermektedir. Çalışma, risk yönetimi stratejilerini güçlendirmek için kontrol faaliyetlerinin artırılmasının, büyük ölçekli işletmelerin deneyimlerinden yararlanılmasının ve uygulamaların iyileştirilmesinin önemini vurgulamaktadır. Politik risk ortamı ve risk yönetim stratejileri arasındaki ilişkinin daha derinlemesine incelenmesi için daha kapsamlı araştırmalar önerilmektedir.

Article Details

POLITICAL RISKS IN INTERNATIONAL BUSINESS: A STUDY ON THE EFFECTİVENESS OF RISK MANAGEMENT STRATEGIES AND CONTROL ACTIVITIES

Authors:

Erhan Polat | İslam Altun | Mehmet Dabakoğlu

Publisher:

Inonu University

Main Topics:

Uluslararası İşletmecilik | İç Kontrol | Uluslararası Risk Yönetimi

Journal:

İnönü Üniversitesi Uluslararası Sosyal Bilimler Dergisi Vol.13 Issue 2, pp.494-517

Document Type:

Article

Publication Date:

12/2024

Document Language:

Turkish

Document ID (Org No.):

2001337128

pISSN:

2147-0936

Political risk

Risk Management Strategies

Control ActivitiesPolitik risk

Risk Yönetim Stratejileri

Kontrol Faaliyetleri

Issues

Article Details

POLITICAL RISKS IN INTERNATIONAL BUSINESS: A STUDY ON THE EFFECTİVENESS OF RISK MANAGEMENT STRATEGIES AND CONTROL ACTIVITIES

Authors: Erhan Polat | İslam Altun | Mehmet Dabakoğlu

Publisher: Inonu University

Main Topics: Uluslararası İşletmecilik | İç Kontrol | Uluslararası Risk Yönetimi

Journal: İnönü Üniversitesi Uluslararası Sosyal Bilimler Dergisi Vol.13 Issue 2, pp.494-517

Document Type: Article

Publication Date: 12/2024

Document Language: Turkish

Document ID (Org No.): 2001337128

pISSN: 2147-0936

Political risk

Risk Management Strategies

Control ActivitiesPolitik risk

Risk Yönetim Stratejileri

Kontrol Faaliyetleri

Issues

Authors:

Erhan Polat | İslam Altun | Mehmet Dabakoğlu

Publisher:

Inonu University

Main Topics:

Uluslararası İşletmecilik | İç Kontrol | Uluslararası Risk Yönetimi

Journal:

İnönü Üniversitesi Uluslararası Sosyal Bilimler Dergisi Vol.13 Issue 2, pp.494-517

Document Type:

Article

Publication Date:

12/2024

Document Language:

Turkish

Document ID (Org No.):

2001337128

pISSN:

2147-0936