| Nationalization is a phrase that seems to show up in | | | | One museum described The Alteration differently. It |
| each business cycle. In this cycle the phrase is | | | | showed a picture of the Patriots stripping a Catholic |
| particularly being used regarding the financial services | | | | Church of religious items, while taking ownership of |
| and automotive industries. | | | | the church. Implied on commentaries briefly was the |
| Whatever you think about nationalizing banks versus | | | | extent of expelling or killing people on the losing side. |
| toxic asset banks, versus the government buying | | | | So there seems to be little doubt that the losing side |
| preferred stock, you probably have seen and heard | | | | also suffered tremendous financial and economic |
| extensive passionate discussions on the nationalization | | | | losses. |
| topic. Depending on what newspapers you read or | | | | Bring this forward to a modern day perspective to |
| media you watch or listen to, you quickly sense their | | | | see and feel how you might benefit or suffer. If you |
| preference and agenda on this topic, as you obtain | | | | are on the losing side of a modern event, your |
| enough facts to create your own opinion. And that | | | | business and in a lot of cases, even more can vanish |
| opinion is the framework you will use to see how the | | | | overnight. Think how quickly General Motors stock |
| political investment and degree of control over the | | | | dropped in value. Talk about a catastrophic risk to be |
| financial sector will impact your business and life. | | | | avoided if at all possible. |
| Most of the media give the impression that | | | | Being on the winning side on tax incentives, obtaining |
| nationalization is a recent phenomenon and that our | | | | or keeping access to resources and your industry or |
| politicians think deeply about to do the "right thing". | | | | company falling out of favor with Congressional |
| And some of our politicians do want to do the right | | | | leadership and whatever versions of political risk your |
| thing. | | | | company may be subject to should be added to |
| When you research this issue outside of the non | | | | your ongoing and periodic evaluation of business risk. |
| business or factual media, you will see a recurring | | | | Using this expanded version of whatever risk |
| comment that the history you read about on most | | | | management, ERM, or strategic planning process your |
| topics has almost always been written by the winning | | | | company uses, how much business risk are you |
| party - that is those who were in favor of the | | | | taking as this turbulent era unfolds? Since most |
| process or subsequently benefitted from it. Seldom | | | | companies thought process about business risk |
| was the losing side allowed to present their version | | | | underestimates the extent of politically induced risk, |
| of what happened. | | | | the enterprise risk management exposure number |
| How surprised would you be to learn that this | | | | your executive team comes up with may stagger |
| appropriation process, for the good of the people, | | | | you. What is really good news is that this review and |
| has been around for hundreds of years? The | | | | the changes you make might save you from a major |
| Netherlands even has a soft sounding little discussed | | | | loss, or at least financial embarrassment. |
| phrase called "The Alteration". | | | | |