April 25, 2018 11:30
Photo : Freepik
According to Aon, the 17 countries that pose a political risk higher than a year ago. By contrast, six countries have seen their risk index to decrease by 2017. A total of 46 countries or territories now have a high or severe risk index, which represents 22 % of the global total.
Aon has published the results in the form of risk maps, which were developed in partnership with Continuum Economics and The Risk Advisory Group. The maps cover political risk, terrorism and political violence. It takes account of changing risks for companies and countries across emerging markets and markets in border.
“Businesses operating internationally must have the appropriate solutions in place to mitigate and transfer the risk “, says the head of the management of the properties, victims and crises, brokerage global Aon, Mark Parker.
Increase of terrorism
The number of terrorist attacks in western countries in 2017 amounted to 204. Aon reports that this figure has almost doubled in comparison to the previous year.
However, the threat posed by the islamic State has ceased to spread, according to the results. In 2017, the terrorist group has perpetrated a number of attacks in 29 countries, on 5 continents, which corresponds to the same number of countries in 2016. Aon believes that the global reach of the group has reached its peak and that the number of attacks will decrease in 2018.
The tourism sector should, in particular, manage the risks posed by the rise of terrorism since it is a target “attractive” to some terrorist organizations, reports Aon. In 2017, at least 35 attacks in the world have directly targeted commercial sectors, such as hotels, night clubs and tourist attractions.
Last year, political risk has increased in 11 countries. Aon attributes this increase to climate change, and impact of commodity prices which have weakened financial positions. “This situation shows the persistence of political risk everywhere in the world,” the report says.
The commercial ties of the asian countries are far removed from the United States and closer to China. Asian exports to the United States fell from 23% of total exports in 2000 to stabilize at about 12 % in recent years. The exports from Asia to China have more than doubled in the last decade.
Africa is the region that has experienced the most downgrades. The risks in Latin America have also increased due to political instability.