Normalizing India’s Country Risk
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Moving organizational activities outside your firm and outside your country’s national boundaries exposes you to risks which were previ-ously more or less non-existent or even unknown to you. The terror attacks on Mumbai in November 2008 put India’s country risk under the limelight for a few days, companies imposed travel restrictions on India and quickly examined their business continuity plan, should the situation escalate. Such reactions were interesting to see and showed a complete misinterpretation of the security situation on the subcontinent; in fact the threat had been there for a long time, the threat has not changed since the events, and the security concern does not only come from terrorist attacks or Pakistan. It is critical that you understand these risks, measure the potential impact on your business and come up with a plan to mitigate the risks. You will never be able to eliminate the risks on the subcontinent, but you should at least normal-ize them — and this is the term I will use in this chapter.