VAPOR - Value at Political Risk

Put a price on political risk 

Where could investors lose out to turmoil?
Analyze the financial impact of political risk on your business
Risk assessments specific to your industry
Assess value at risk and probable maximum loss from six political perils

VAPOR (Value at Political Risk) is an online, interactive tool for political risk measurement and management. The joint service from Willis Towers Watson and Oxford Analytica uses an algorithm based on catastrophe risk modeling to deliver risk assessments expressed in USD expected loss.

  • Incorporate political risk estimates into your planning, including discounted cash flow, net present value and project economics
  • Draw on risk assessments specific to your industry, for six political risk perils in 165 countries
  • Measure and prioritise political risk exposures across your entire range of global activities
  • Risk ratings by Oxford Analytica, based on a 40-year track record of advising clients on political risk scenarios
  • Algorithm developed by Willis Analytics based on field-tested catastrophe risk models
  • Sophisticated interactive tool with 24/7 online access
  • Dollar-value expected loss and probable maximum loss estimates for political risk
  • Portfolio-value-at-risk estimates for one-in-100-year, one-in-200-year, and one-in-1,000-year loss scenarios
  • Risk ratings updated quarterly
  • Full person-to-person training on getting the most from the tool
  • Option: management reports
  • Option: custom dashboards

VAPOR Online: Online access to the algorithm and dashboards

VAPOR Report: Management report that measures and prioritises a company’s political risk exposures based on the full range of its international activities

VAPOR Dashboard: Quarterly or biannual financial dashboards that identify and track any changes in political risk exposures over time

Pricing for VAPOR depends on the number of users with access the system and the editions selected.

To obtain an illustrative quotation for the service that meet your needs, please request a demonstration or contact us using the links on this page.

Financial evaluation of political risk exposure

Client team: Risk Management and Finance

Issue: Global operators need a way to incorporate political risk into discounted cash flow projections.

Engagement: The Value at Political Risk online system allows risk and finance teams to produce estimates of expected loss and probable maximum loss from political risk specific to their industry and to their country exposures, and incorporate them into their financial projections.

Result: The client's financial projections incorporate provision for political risk based on a sound methodological footing.