Marsh has published its 2017 Political Risk Map, which highlights the top geopolitical threats facing today’s multinational companies. The 2017 Political Risk Map draws on data from BMI Research. The 2017 Political Risk Map rates over 200 countries and territories on the basis of political, economic, and operational risk, reflecting both short and long-term threats to stability, and helping multinationals make more informed decisions about where and how to deploy financial resources globally in the year ahead.
Among the key findings of the 2017 Political Risk Map are:
- The top political risks facing businesses and investors in 2017 are: the rise of anti-establishment, nation-first parties in Europe; falling commodity prices; country leadership succession risks; growing protectionism; terrorism; and uncertainties in emerging economies.
- Political risks appear to follow geographical trends with emerging markets, particularly those in North Africa and the Middle East, showing the greatest instability as conflicts, civil war and socio-economic instability continue to impact such countries as Syria, Sudan, South Sudan, Central African Republic, and Yemen.
- Companies should place greater importance on the way they approach political risk, which can cause business interruption, supply chain disruption, barriers to trade, and possible damage to property and risks to employees in the areas they operate.
Evan Freely, Global Practice Leader of Credit Specialties, Marsh, said: “In what is undoubtedly a tough operating environment, organisations need to identify and assess the types of political risk events that could affect their business and adapt their strategies to reflect the possible impact they could have. This includes keeping a close eye on how political risks develop over the course of 2017 on a macro level, rather than viewing them as local issues. Only by doing this will these companies be able to adapt quickly to the changing political risk environment, and capitalise on any opportunities that it may present.”