The assessment of the non‐economic Environment in European companies

Abstract

The rapid changes in today's competitive environment can have a tremendous impact on company's performance. Companies have to tie resources to monitor these changes in order to survive. Political risk assessment is a managerial tool to cope with the uncertainties in the political environment.

The aim of the study was to find out how large European companies use this tool in their planning process. Of the responding companies 52.2 percent monitored their political environment regularly as a part of their on‐going planning process. Results of the study are presented in the paper.