Political Risk Indicators

MBI’s Political Risk Indicators quantify the probability of violence and war within the next 10 years at the regional level – expressed as an internationally comparable percentage.

Analysts are standing in front of a world map on which the political risk indicator is plotted.

How can the probability of violence or war be calculated statistically?

Political risks are often described qualitatively – MBI makes them measurable.
The political risk indicator consists of two risk indices, which can be used individually or combined into an overall value:

  • Violence Potential Index – probability of significant violent conflict
  • War Risk Index – probability of war or war-like conflict
What data sources are used to determine the probability of violence and war?

The analysis is based on global automated and curated text analysis of media and content platforms, capturing relevant events and incorporating qualitative assessments.

What methodology is used to calculate the probability of violence and war?

The approach identifies different dimensions of political risk at the regional level, enabling a distinction between violent conflicts and war-like conflicts. The probability of violence and war within the next ten years is calculated through statistical analysis of current and time-series data.
Result: A percentage probability of occurrence within a 10-year period.

Is the political risk indicator designed for real-time conflict monitoring or for long-term strategic planning?

The political risk indicator is not designed for daily reporting of individual events. Instead, it focuses on the systematic and long-term tracking of parameters that influence the probability of conflict.

What is the Difference between Violence Potential and Risk of War?

Different forms of violence are identified and assigned to two risk categories.
The classification takes into account:

  • the number of forces involved
  • the types of weapons used
  • the number of fatalities

Violence Potential Index

The focus is on internal unrest and violent confrontations, which may include:

  • demonstrations
  • strikes
  • political unrest
  • civil disobedience

Risk of War Index

The focus is on severe threats related to war-like actions, including:

  • armed conflicts
  • cross-border disputes
  • terrorist attacks
  • other serious security threat

Advantages of MBI’s Political Risk Indicators

  • Two differentiated risk categories: Depending on the industry and business model, the risk of civil unrest may be more relevant for one company, while the risk of war or cross-border conflict may be more significant for another.
  • Percentage probability of occurrence: Political risk is expressed as a clear and intuitive probability value.
  • Regional level instead of country-level only: Conflicts increasingly escalate at the regional level. Granular data capture regional differences in detail and enable more differentiated analyses.
  • International comparability: Although political systems and societies differ between countries, the risk index remains internationally comparable.
  • Time-series based forecasting: The model is based on a comprehensive and continuous data foundation dating back to 1945.

Use cases for political risk data

  • Site selection and strategic planning of market entry
  • Selection of local suppliers
  • Ongoing evaluation of sites and suppliers
  • Search for alternative network partners and transport routes in the event of a crisis
  • Site selection and supply chain planning

Which variables are included in the political risk indicator dataset?

CTRYCODETwo digit country code by ISO 3166
ADMINCODEAdministrative code
NAME Administrative level: Name of administrative area

RISK_A1
10-year Political Risk – Probability of Violence: percentage
RISK_A210-year Political Risk – Probability of War: percentage

Additional Risk Indicators

Sound decision-making in areas such as site selection, investment, and supply chain management requires the consideration of multiple types of risk.
The political risk indicator is part of MBI’s four-dimensional international risk indicator.

Political

Violence Potential & Risk of War

Social

Social inequality and structural differences in the population

Economic

Operational and market risks for industries and companies

Ecological

Natural hazards and other climate change threats

Key Differentiators

Globally consistent and comparable data

Strict quality control

Individual consulting and support

Continuous updating after every release

100 % GDPR compliant

DATA FORMATS

cvs | json

Geo Formats:
Esri Shapefile (.shp) | Esri Geodatabase (.gdb) | MapInfo (.tab) | GeoJSON | GeoParquet (.parquet) | GeoPackage (.gpkg) | more on request

DATALINK API

Easy access to a variety of MBI data
• Datalink Desktop
• Datalink Rest API

> LEARN MORE

UPDATES

Quarterly updates

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