As Ian Bremmer and Preston Keat reveal in this innovative book, volatile political events such as the 2008 Georgia-Russia
confrontation--and their catastrophic effects on business--happen much more frequently than investors imagine.
On the curve that charts both the frequency of these events and the power of their impact, the "tail"
of extreme political instability is not reassuringly thin but dangerously fat.
Featuring a new Foreward that accounts for the cataclysmic effects of the 2008 financial crisis, The Fat Tail is
the first book to both identify the wide range of political risks that global firms face and show investors how
to effectively manage them. Written by two of the world's leading figures in political risk management, it reveals
that while the world remains exceedingly risky for businesses, it is by no means incomprehensible. Political risk
is unpredictable, but it is easier to analyze and manage than most people think. Applying the lessons of world
history, Bremmer and Keat survey a vast range of contemporary risky situations, from stable markets like the United
States or Japan, where politically driven regulation can still dramatically effect business, to more precarious
places like Iran, China, Russia, Turkey, Mexico, and Nigeria, where private property is less secure and energy
politics sparks constant volatility. The book sheds light on a wide array of political risks--risks that stem from
great power rivalries, terrorist groups, government takeover of private property, weak leaders and internal strife,
and even the "black swans" that defy prediction. But more importantly, the authors provide a wealth of
unique methods, tools, and concepts to help corporations, money managers, and policy makers understand political
risk, showing when and how political risk analysis works--and when it does not.
"The Fat Tail delivers practical wisdom on the impact of political risk on firms of every description and
valuable advice on how to use it. Ian Bremmer and Preston Keat offer innovative thinking and useful insight that
will help business decision-makers find fresh answers to questions they may not yet know they have."
--Fareed Zakaria, best-selling author of The Post-American World
"Political risk has become increasingly complex, and The Fat Tail provides a truly new way to quantitatively
assess it in established and emerging markets. It is essential reading for any CEO with multinational interests."
--Randall Stephenson, Chairman, CEO and President, AT&T Inc.
"Should be essential reading for anyone involved in international business even--perhaps especially--in places
that seem politically stable."
--Bill Emmott, former editor-in-chief of The Economist