CONFIDENTIAL
ENODO MEANS “TO SOLVE”
WE DECIPHER SOCIAL RISK COMPONENTS TO SOLVE COMPLEX POPULATION-CENTRIC CHALLENGES
DIASPORA INVESTMENT:
HOW SOCIAL RISK ANALYSIS MAXIMIZES IMPACTS & RETURNS
WHAT IS SOCIAL RISK?
Social Risk—the intersection of societal grievances, government
objectives, private sector profit, and disruptive technologies.
When grievances and needs are not
addressed, social risk increases and
seemingly “insignificant” events can
trigger protest, strikes, litigation, looting,
work stoppages, and violence.
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SOCIAL
TECHNICAL
DEFAULT
ENVIRONMENTALREPUTATIONAL
GEOPOLITICAL
REGULATORY
RISK PORTFOLIO GAP
TERRORISM
POLICY SHIFTS
ACCESS DENIAL
TOXIC
BRANDING
WORK
STOPPAGES
PROTESTS
LITIGATION
VIOLENCE
SOCIAL RISK MANIFESTATIONS
WORK
STOPPAGES
POLICY
SHIFTS
TOXIC
BRANDING
PROTESTS
Social Risk fills a gap in existing risk portfolios
INNOVATIVE RISKAPPROACH
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APPROACH
Topic Modeling
Develop Baseline Assessment of
Important Topics
Example:
What do the communities where the investments are being made talk about? What do the different diaspora communities discuss about their home country?
Identity Filters
Use Ontology to Determine Most Relevant Social
Identities
Example:
Classify diaspora community or communities where investments are made across race, religion, ethnicity, gender, education status, income levels, and age (Millennials)
Sentiment Filters
Assess and Monitor Varying
Perceptions across Social Identities
Example:
What do the communities where investments feel about foreign investment? How does the diaspora community feel about their home country government?
Social Network Analysis
Identify Key Influencers and
their Relationships
Example:
Engage based on network size and degree of influence within the diaspora community or communities where investments are made
Linking targeted groups
Communication strategy around anti-corruption
narrative
Example:
Design campaign strategy around key topics (e.g. social impact) that link to individual identities of key groups within the diaspora
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Assess Social Risk
Common Identities
Design Strategies
Maximize Returns &
Social Impact
Uncover, quantity, and forecast Social Risk
exposure of target markets and individual
investments
Link commonalities between key demographics in
the home country and diaspora communities to
create long-term investments and relationships
Design communication strategies that connect
populations’ grievances and basic needs to
diaspora communities’ motivations & initiatives
Simultaneously reduce social risk exposure to
increase returns and tailor investments to local
communities for sustainable social impact
HOW CAN ENODO HELP DIASPORA INVESTMENT
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Social Risk Social Impact
SOCIAL RISKASSESSMENT
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Social
Impact
Provide
AssessmentIdentify
Issues
Measure
Sentiment
Develop
Metrics
Design
Programs
Communicate
Plans
Measure
Progress
01
02
03
04
05
06
07
Re-evaluate
underlying grievances
and basic needs
Measure progress at
key milestones
identified by the client
Communicate plans
to key stakeholders
Customize investments or
community engagement programs
Develop metrics to
measure progress
Measure current
sentiment across
key stakeholders
Identify underlying
grievances and
basic needs
SOCIAL IMPACT PROCESS
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ENODO Capabilities:
Topic Modeling
Sentiment Analysis Identify investments with highest
potential for impact based on
population needs
Link common identities among
diaspora to these investments
Use customized platform using
social media to increase
transparency and create trust
between diaspora investors,
Indian communities, and
government entities
Align investment goals among
key stakeholders
Social Risk Rating: Medium/High
Environment Score (6)
Actor Score (6)
Combined Score (7)
High Net Worth U.S. Indian Diaspora
High Net Worth non-U.S. Indian Diaspora
Diaspora Investment Financial Advisors
Local, regional, and national government
Challenges
Key Stakeholders
Proposed Solution Lack of verified information and general distrust
among Diaspora community toward the Indian
investment environment
Preference of diaspora members for shorter-term
maturity (<5 years) for impact and financial returns
Consistent measurement of social risk during due
diligence and social impact from investments
Communication strategy to current and potential
diaspora investors
National, regional, and local corruption
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USE CASE: INDIAN DIASPORA INVESTMENTS
BACKGROUND
ENODO conducted a specialized analysis and found
out that mismanaged resources, financial and water
insecurity, create a nexus of threats that amplify the
ongoing water crisis and conflicts in Mandsaur in
central India
Unaddressed social tensions fueled by social media
threaten regional stability and food security
SOLUTION
Mitigate Social Risk factors to enable diaspora
investors in more effectively responding to social
issues that cause rural economic decline, rural-to-
urban migration, water and food insecurity
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INVESTING IN RURAL INDIA: MANDSAUR CASE STUDY
Home Country Population
Financial Advisors
Diaspora
Community
Financial Advisors Differentiate from other investment platforms
Data-driven, local expertise comparable across markets
Tailored communications to each diaspora community
Diaspora Communities Higher return on investment
Augment circular migration information on home country market
Stronger connection to and impact on home country
Home Country Population Direct investment to fulfill basic needs and address grievances
Economic Development
Increased security, reduced social unrest
BOTTOM LINE
Social Risk Analysis Benefits Stakeholders in Diaspora Investments
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