Case StudyMongolia

Investment Opportunity and Political Risk

• Background
  A financial sector client engaged Veracity to assess the political risks related to investing in a Mongolian company in which a high-level government official was a silent shareholder.
• Action
  Veracity provided an overview of domestic political dynamics, including an assessment of how recent shifts in the landscape had impacted the official's political standing, the likelihood of him remaining in office in the next election, and the views of key political stakeholders. Veracity traced the source of the official's wealth and assessed the legitimacy of how he obtained his wealth to help understand the likelihood of government scrutiny of his assets. Veracity found that the official’s future in government was tenuous, but that the overall political and corruption risks related to the investment were minimal.
• Results
  Veracity’s assessment helped the client gain comfort that the investment was in line with its risk tolerance, and the investment proceeded.