This means that if we were to engage in managing political risks ex ante, most of the time we would be operating in uncertain circumstances and making judgement calls. I would question whether this could really be called risk management at all. Worse still, it would project us into the political domain on very shaky analytical foundations.
This brings me to the second reason why economic and political risks have to be treated separately, and it relates to the endogeneity between monetary policy and risks.