Marsh’s Risk Map presents a global view of issues facing multinational organisations and investors, drawing on data and insight from BMI Research, a leading source of macroeconomic, financial, and industry risk analysis.
Shock events in the West, including the UK’s Brexit vote and the result of the US presidential election, have the potential to amplify geopolitical risks in 2017. Large populations have become dissatisfied with conventional politics, driven by factors such as surges in immigration, the ongoing terrorism threat, and the knock-on effect of global financial crises. This has resulted in increased protectionism and the rise of anti-establishment, nation-first parties in countries around the world.
In addition to these threats, greater assertiveness from China and Russia may also impact the risk landscape in 2017. Succession risks, conflict, and instability present further concerns in several regions.
How will your clients navigate this volatile environment?
Explore the map to view risk scores for the countries where they may have assets, operations, or investments, or may be considering new opportunities. Choose the overall Country Risk Index, or view the map by in-country political, economic, or operational risk scores.
The Country Risk Index (CRI) is based on data from BMI Research and quantifies the risk of a shock, such as an economic crisis or a sudden change in the political environment, which would affect business conditions within a country. The CRI is the average of six risk index components: short-term and long-term political and economic risk indices, and also operational risk, which is given a double weighting because it is not broken down into different timeframes. Operational risk assesses four main areas: the labour market, trade and investment, logistics, and crime and security. Unlike economic and political risk, operational risk assesses the status quo, rather than BMI’s projections for the coming year.
Launch the interactive map at: https://articles.marsh.com/PoliticalRiskMap2017.aspx
Further Analysis: Global Geopolitical Risk Concerns for Businesses in 2017