During Phase I of the project on the impacts of new oil discoveries on political stability in Africa, IDA studied commercial approaches to
political risk. Commercial approaches to risk assessment are based on different criteria from assessments performed in an academic or
public-sector context. It is important to understand the risks inherent to oil and gas (O&G) operations and how international oil companies
(IOCs) judge whether to enter a new market when new O&G discoveries are made in host countries.