Political risk analyst

You'll need relevant work experience and a network of contacts in your field of interest to get a job as a political risk analyst

As a political risk analyst, you'll assess political, social and economic factors that can affect governments and businesses. These can include economic conditions, political stability, crime levels, corruption, the threat of conflict, terrorism, trade regulations and humanitarian or human rights issues.

Your analysis of both the threats and opportunities will help businesses, investors, governments and non-governmental organisations (NGOs) understand potential risks and make informed decisions about policy, strategy and investment.

Job titles can vary considerably. For example, depending on the employer, the role may be advertised as country risk analyst, geopolitical risk analyst, country researcher, research analyst, corporate security analyst, threat intelligence specialist or intelligence analyst.

Types of political risk analysis

The focus of your role will depend on who you work for. Some positions are generalist, covering several areas, while others are more specialised. It's possible to concentrate on:

• a country or region - providing in-depth intelligence on a range of political issues and risk factors relating to a specific part of the world
• certain themes or issues - such as governance and regulations, security (including terrorism and cyber security), crime, conflict, human rights or humanitarian issues, climate change and sustainability, sanctions and compliance, or the impact of emerging technologies such as AI and digital surveillance
• a sector or industry - for example, you could work within or provide consultancy to financial services and insurance companies, energy, oil and gas firms, consumer businesses, or global supply chain and logistics operators.

In-house roles usually involve using internal data to advise businesses on risk factors within the context of the industry and market in which they operate. You will typically be involved in the full lifecycle of an investment or business decision.

As a consultant, you'll work on different projects for a range of clients - supporting companies, governments and other organisations with ongoing or ad-hoc information about the political environment.

Risk analysts within think tanks, NGOs and research institutes provide intelligence to inform and influence national and international policymaking, strategy and humanitarian initiatives. In this type of setting, your work is likely to be focused on a particular theme or issue.

Responsibilities

As a political risk analyst, you'll typically need to:

• conduct in-depth analysis and assessment of political and economic factors from a range of sources, including news outlets, government reports, social media and specialist intelligence platforms
• monitor political, social and economic risk factors, including sanctions, compliance and regulatory changes, maintaining and updating databases and providing updates and recommendations as needed
• use modelling tools, GIS, data analytics and visualisation techniques to calculate risk scores and communicate findings
• produce scenario models and forecasts to assess the potential impact of political or international developments on business or policy decisions
• write bespoke risk assessments and reports for clients, with clear recommendations on managing or mitigating risks
• deliver briefings and presentations to clients, colleagues or wider audiences, adapting your message to different stakeholders
• collaborate closely with colleagues, including economists, data analysts and market experts, as well as with those in related areas such as security, compliance, legal and corporate strategy to provide joined-up advice
• build and maintain a network of contacts in government, academia, business and the media to inform your analysis
• track local, regional and global political and financial developments using the press, subscription services, online platforms and open-source intelligence (OSINT) tools
• look for opportunities for professional development to keep your skills and knowledge up to date.

With experience you may act as a country or subject matter expert, providing advice and guidance to both your colleagues and clients.

Salary

• Starting salaries for junior analysts and consultants are typically between £25,000 and £32,000 depending on your experience and qualifications.
• With experience, you can typically earn between £35,000 and £60,000. Senior analyst roles will usually be at the higher end.
• As a team or division leader, you could earn in the region of £50,000 to £75,000 or more.

Salaries vary widely. You'll typically earn more if working within financial services or for a private sector company, or for one of the larger more well-established political risk consultancies. Salaries at think tanks, research institutes and NGOs can be considerably lower.

Income figures are intended as a guide only.

Working hours

Working hours vary depending on your role and employer, but you'll typically work 37 hours a week, Monday to Friday. Your work is usually project based, so your hours will depend on client needs and deadlines. There may be times when you have to work extra hours to meet deadlines.

Part-time work is possible and is more likely in larger organisations. There may also be opportunities for hybrid or remote working.

What to expect

• Work is fast paced as you'll be responding to complex and often rapidly shifting political and international developments. This can be exciting but also a challenge, and you'll need to adapt quickly and perform well under pressure.
• Most roles are office based, but you may travel for client meetings (particularly if you work for a consultancy), conferences or events. Some roles will also involve travel or periods spent working overseas.
• Employers, particularly consultancies, financial services firms and businesses with intelligence and risk divisions, are typically based in major cities in the UK and worldwide.
• You'll need to be confident handling large amounts of data and using specialist data analysis tools and programmes.
• The work can be deadline driven and client facing, requiring both independent desk research and collaboration with colleagues, often on sensitive political and economic issues.

Qualifications

A degree in a social science or humanities subject is the most common entry route into the role of political risk analyst. The following subjects may be particularly helpful:

• business
• economics or finance
• international relations
• journalism
• modern languages
• politics
• regional or country studies.

Fluency in one or more foreign languages is highly sought after and may be essential for some roles. Language skills can also enhance your employability and may open up access to higher-level or better-paid positions.

Other subjects, including data science, statistics or computer science, are also valued, particularly if you can demonstrate strong political awareness and research skills. Backgrounds in security, law enforcement or intelligence work can also be an advantage.

A related Masters degree (such as international relations, security studies or conflict/risk analysis) is a distinct advantage, and a requirement for some roles. An undergraduate degree may be sufficient for entry-level roles or graduate training programmes, but you'll usually also need evidence of quantitative and qualitative research experience or additional training.

A PhD can be useful for specialist or academic-related roles, particularly if your research is closely aligned to the work. However, it's not normally a requirement.

Think carefully about the area of political risk analysis you'd like to work in, and check job adverts to see which qualifications employers expect.

Short courses in open-source intelligence (OSINT), data analytics or risk assessment can also help strengthen your profile.

Skills

You'll need to have:

• a keen interest in politics and current affairs, with up-to-date knowledge of international developments and trends
• research skills (quantitative and qualitative) to gather, sift and evaluate large amounts of information
• critical thinking and analytical ability to assess evidence and draw reliable conclusions
• written communication skills to produce concise reports and present complex information clearly and simply to a range of audiences
• numerical skills for working with data and statistics, calculating risk scores and undertaking economic and financial analysis
• problem solving and adaptability to respond quickly to changing developments and deadlines
• interpersonal and networking skills to build relationships with clients and professional contacts
• diplomacy and influencing skills when questioning, challenging or advising decision-makers
• technological competence, including the use of data analysis tools, databases and intelligence platforms
• commercial, global and cultural awareness to understand business needs and work effectively across different regions and contexts.

Work experience

Political risk analysis is a competitive field to get into, so gaining relevant work experience is essential.

Identify the companies and organisations you'd like to work for and check their websites for internship or summer placement opportunities. Competition is strong, so apply early, be resilient and keep an open mind about alternative routes. You can also approach organisations directly to show your enthusiasm for their work and the skills you can offer.

Relevant experience includes:

• conducting research, data analysis and report writing
• gaining experience in a commercial environment and learning how businesses operate
• time spent working in the sector or region you want to specialise in - for example, working for an energy or oil company or volunteering in a particular country
• placements or internships in think tanks, NGOs, research institutes, government or policy settings
• experience in journalism, security, compliance or financial services, which all build relevant transferable skills.

Fluency in languages and experience living or working abroad are also valuable.

As a starting point, Lawson Chase has a list of political risk consultancy firms that may be helpful when looking for companies to approach.

Find out more about the different kinds of work experience and internships that are available

Employers

Opportunities exist with:

• political risk consultancies and advisory firms
• political risk or intelligence divisions of financial services firms (such as banks, investment management firms, credit ratings agencies or insurance companies)
• risk or intelligence divisions of private companies - particularly in oil, gas or energy companies and consumer goods businesses
• NGOs
• think tanks and research institutes.

Look for job vacancies at:

• PoliticalRiskJobs.com - worldwide jobs in political risk.
• Barclay Simpson and Lawson Chase - specialist recruitment firms that typically work with experienced professionals and don't have many entry-level opportunities.

Vacancies can be hard to find. While some may be advertised on general job boards, it's more common to identify organisations of interest and check their websites directly for opportunities. Chambers of commerce for the country you're interested in may also provide useful directories.

Speculative applications are important. Check the websites of political risk consultancies to find out if they accept speculative applications and how to submit them.

Building a professional network is also vital for hearing about openings and helping secure your first role. Internships are a common entry route and may lead to a permanent position.

With experience, some analysts move into freelance work, offering advice directly to clients.

Professional development

Most employers provide training relevant to the role, which may cover both risk-specific knowledge and wider business or professional skills.

If you don't already have a Masters, you could consider studying for a postgraduate degree in risk, international relations or security studies, or specialise in an area such as risk and finance or insurance.

Search postgraduate courses in risk.

You could also join a professional association or membership organisation, such as:

• Institute of Risk Management (IRM)
• Society for Risk Analysis
• Chatham House
• International Institute for Strategic Studies (IISS)

Throughout your career, you'll need to engage in continuing professional development (CPD) to keep your skills current. Many associations provide events, webinars and networking opportunities. It's also important to stay up to date with developments in the politics, economics and security of the regions you cover, through news, conferences, briefings and professional networks.

Career prospects

You'll usually start your career working for a specialist risk and intelligence consultancy firm, typically in an entry-level research, associate or junior consultant role. Competition for roles is fierce, so you'll need to be proactive in finding opportunities.

Early on, much of your work will focus on research, analysis and producing reports. You may begin in a generalist role but are likely to gain experience in a sector or country specialism. Employers will take advantage of any language skills you have and there may be opportunities to travel.

After two to three years, you could progress to a more senior role, leading projects and having more contact with clients. From there, options include managing a political risk team or division, with responsibilities extending to business development and operations. Career movement between firms is common, allowing you to broaden your experience by working in different business areas or with different types of clients.

You may also choose to specialise in a region, risk type or business area, developing into an expert consultant. This can open up opportunities for writing, media work or freelancing. Fields such as data science and geographic information systems (GIS), driven by advances in AI, are also creating new career paths.

Your skills and experience are also highly transferable. For example, you could move into financial or credit risk analysis, security or crisis management, or policy and research roles within government or think tanks.