- Market Entry and Exit: Understanding political risks can help leaders decide whether to enter or exit a market. High-risk environments might deter entry or prompt an exit strategy. - Investment Decisions: Political risk analysis can influence decisions regarding the allocation of resources and investments. Leaders might choose to limit exposure in high-risk areas or seek opportunities in more stable regions. - Supply Chain Management: By analyzing political risks, leaders can develop more resilient supply chains that can withstand disruptions caused by political instability.