Political risk analyst: Skills, career path and how to get started

Political risk analysis is a crucial capability to have in-house for many organisations. It ensures they’re aware of the political environment they’re operating in and ready to tackle any international developments that may affect the way they do business.

What is a political risk analyst?

The role of a political risk analyst is to assess a number of factors, including the economy, crime and government stability, in a given location. This information is then used to inform business or investment decisions in the private sector, or policy in governments and non-governmental organisations.

Some risk consulting jobs can mean specialising in a certain region, issue or industry, with a career in political risk taking people in a variety of directions. If you have a passion for politics and strong research skills, it could be an appropriate role for you.

Key responsibilities of a political risk analyst

A political risk analyst’s responsibilities are:

• Researching information from multiple sources
• Performing data analytics to glean the most relevant insights
• Monitoring conditions and updating platforms with developments
• Using modelling tools to calculate risk scores
• Creating scenario models and forecasts to inform business or policy decisions
• Assessing the impact of political or international trends
• Researching and writing bespoke risk assessments and reports for stakeholders
• Offering recommendations about managing and mitigating risks
• Delivering briefings and presentations on findings
• Developing and communicating regularly with a network
• Reading sector-specific publications
• Maintaining up-to-date knowledge of political trends and developments

Essential skills and qualifications

Going into international risk assessment or political risk management roles requires a selection of both technical and soft skills. Many of these can be gained through qualifications, but work experience or an entry-level position can also help develop these abilities on the job.

Soft skills include:

• Critical thinking
• Communication
• Cultural awareness
• Research abilities

Hard skills include:

• Data analysis
• Geopolitical knowledge
• Commercial awareness
• Knowledge of software tools

Career path and opportunities in political risk analysis

After obtaining a bachelor’s degree in a relevant subject like business, finance or politics, some future political risk analysts get a masters or PhD, but many go straight into work experience. Entry-level jobs often come in the form of research analyst roles, where you can hone your skills.

From there, you can move on to more senior roles, where you’re responsible for the risk analysis process from start to finish, before managing a whole team. Organisations that are often looking for political risk analysts include governments, consultancies, financial services providers, think tanks and research institutions.

Challenges and rewards of the role

Working in political risk analysis can be both a challenging and rewarding way of life, since managing complex global scenarios is a pressurised situation. For those who have a calm demeanour and the right skill set, it can be thrilling to monitor political landscapes and draw your conclusions.

The fast-paced nature of the role means you must be able to adapt quickly to rapidly-shifting situations. The reward is to know you’ve accurately deduced the situation on the ground and communicated it to stakeholders to ensure the right business decision is made going forward.

How to start your career as a political risk analyst

Start by getting your educational credentials in order, with a degree in political science, international relations, economics or something similar, before thinking about gaining experience and networking. Having an internship or volunteer work on your CV will help you to understand how businesses operate in the risk analyst space, making you more employable than a newly-graduated candidate.

Take advantage of both online and in-person networking opportunities like industry events and conferences. This will help you form connections at political risk consultancies and other firms that could advance your career.