Political factors are a core element of an organization’s external context in widely used GRC and risk frameworks (commonly captured in PESTLE analysis and in “context of the organization” concepts used across management system standards). The most direct political drivers are government interventions that shape the operating environment: legislation and regulation (e.g., licensing, sector rules, labor requirements), enforcement posture, tax policy, trade restrictions, sanctions, and the predictability of the rule of law. Political stability (or instability) also affects risk exposure—disrupting supply chains, altering market access, raising security threats, and increasing the likelihood of abrupt policy shifts. These factors materially influence strategy, compliance obligations, risk appetite, and control design, so they are treated as external drivers that must be monitored through regulatory change management and enterprise risk management processes. By contrast, items like government relations programs, HR policies on employee political activity, and political contributions are typically internal governance/ethics controls—important, but not “external context” factors themselves.
Contribute your Thoughts:
Chosen Answer:
This is a voting comment (?). You can switch to a simple comment. It is better to Upvote an existing comment if you don't have anything to add.
Submit