Country risk management strategies for medical device companies in emerging markets : navigating political and economic risks in Georgia

Emerging markets remain attractive and still underexplored for some medium and large medical device companies. Recent regulatory developments in the field contributed to increased patient awareness about the availability of innovative treatment options. As knowledge and need of product accessibility grows, so too does the demand for these products. Medical device companies focused on competitiveness and profitability are thus motivated to meet this demand through market expansion opportunities. Market entries present various challenges, among which, economic and political risk exposure is particularly significant. The objective of this thesis is to identify, analyze, assess, evaluate the risks to which medical device companies will be exposed. Thesis proposes a practical framework for mitigating economic and political risks through implementing both, internal and external risk treatment strategies. Methodology is based on the principles from well-established harmonized standards for enterprise risk management. It uses quantitative data specific to Georgia to evaluate political and economic indicators and to assess the impact of the risk severity and probability relevant for medical device companies. This research reveals that current political instability in Georgia has already affected its country risk profile. Democratic backsliding is beginning to impact economic indicators. This has the potential to reduce attractiveness for foreign direct investment in country. Nevertheless, through proportionate and informed risk management strategies, medical device companies could reduce the impact of both, existing and upcoming risks from entry into Georgian orthopedic medical device market. As the medical device market in Georgia is not yet fully regulated, it currently allows medical device companies to benefit from investment freedom levels on hand.