Abstract

Enterprise-wide risk management systems primarily reflect market price risks, default risks, operational risks and sales/procurement risks in quantitative terms. In literature and practice, geopolitical risks in a company have so far mainly been depicted descriptively, qualitatively Hood [1], Howell [2] or in the form of country risk [3,4]. However, the influence of geopolitical risks (e.g. in the USA (Trump), Turkey (Erdogan), Great Britain (Brexit), Ukraine (Crimea - annexation, EU - sanctions against Russia), Egypt (Arabian Spring), etc.) has strongly increased in recent years Feldstein [5] and currently forms a central research area in Supply Chain Risk Management (SCRM, see Bendul [6]). In the following, approaches will therefore be developed to not only qualitatively integrate geopolitical risks into enterprisewide risk management systems but also to map them in currency units. The aim is to integrate future geopolitical risks into the Value at Risk concept as objectively and comprehensibly as possible.