Risk Assessment and Management

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Realism

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Risk Assessment and Management

Definition

Realism is a perspective in international relations that emphasizes the competitive and conflictual side of human nature. It views states as the primary actors in a world where power and security are the main objectives, often leading to a focus on national interest and survival. In the context of geopolitical risks, realism helps to explain how nations interact with each other amidst uncertainty and shifting power dynamics.

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5 Must Know Facts For Your Next Test

  1. Realism suggests that the international system is anarchic, meaning there is no overarching authority to enforce rules or norms.
  2. Power is considered the most important currency in realism; nations often seek to maximize their power relative to others.
  3. Realists argue that moral considerations should be secondary to national interests in foreign policy decision-making.
  4. The concept of security dilemma is central to realism; as one state's security increases, others may feel threatened, prompting an arms race or conflict.
  5. Historical events such as World War I and II are often interpreted through a realist lens, emphasizing competition among major powers as a driving force behind conflict.

Review Questions

  • How does realism explain the behavior of states in an anarchic international system?
    • Realism posits that in an anarchic international system, states operate under self-help principles because there is no central authority to ensure security or enforce agreements. This leads states to prioritize their national interests and survival above all else. Consequently, they may engage in power struggles, form alliances for protection, or act aggressively to deter potential threats from other nations.
  • Discuss the implications of the security dilemma within the framework of realism and how it can lead to increased geopolitical risks.
    • The security dilemma illustrates how efforts by one state to enhance its security can inadvertently threaten others, resulting in an arms race or heightened tensions. In realism, this dynamic underscores the competitive nature of international relations, as states react defensively to perceived threats. This can escalate into conflicts or wars, as nations misinterpret each other's intentions or capabilities, thus increasing overall geopolitical risks in a volatile global landscape.
  • Evaluate how realism as a theoretical framework can inform risk assessment strategies for multinational corporations operating in unstable regions.
    • Realism offers crucial insights for multinational corporations by emphasizing the importance of understanding power dynamics and national interests in unstable regions. By applying realist principles, businesses can assess geopolitical risks more effectively, recognizing that local governments may act unpredictably based on their security concerns. This understanding allows companies to develop strategies that mitigate risks associated with political instability, potential conflict, and changes in regulatory environments driven by state actions aimed at enhancing national security.

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