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The Fat Tail
Book

The Fat Tail

The Power of Political Knowledge for Strategic Investing

Oxford UP, 2009 Mehr


Editorial Rating

9

Qualities

  • Innovative
  • Applicable

Recommendation

This timely, concise book provides an introduction to managing and assessing international political risk. Ian Bremmer and Preston Keat downplay the jargon and specialists’ terminology, so their book is easily accessible. However, the authors do presume that readers have at least a nodding acquaintance with the facts of international business life. Many recent risk management books focus more on managing market risks. Political risk, while less quantifiable, still presents a challenge and demands effective administrative attention. This book is a valuable addition to the literature on risk management. Its great merit, getAbstract reports, is that it provides a framework for understanding the nature of political risk and a variety of approaches to managing it.

Take-Aways

  • “Political risks” stem from domestic or global political events that affect asset values.
  • The tails of the political risk bell curve are fat: Calamitous events are more likely than most people think.
  • Forecasting “unknown unknowns,” events even experts can’t know about, is difficult.

About the Authors

Ian Bremmer, author of The J Curve: A New Way to Understand Why Nations Rise and Fall, is President of the Eurasia Group, where Preston Keat is Director of Research.


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