The current global geopolitical landscape has become one of the most unstable in recent memory according to experts, a fact that has serious economic and organizational implications for risk managers and their firms.
“From the violence that continues to be inflicted by ISIS, to the political turmoil in Argentina and Brazil, to the Brexit earthquake that is shaking the European Union, these pessimistic predictions about global stability seem to be accurate. What is a risk manager to do? While many of the crises besetting the globe are concerning at an existential level, risk professionals still must confront the pitfalls facing their organizations,” stated Brandon Righi, author of the RIMS report entitled, “Decoding Political Risk Management.”
Political risk is generally defined as risk arising out of the actions of governments; however, according to Curtis Ingram, vice president on Aon Crisis Management, it can include “confiscation, expropriation and nationalization (CEN), license cancellation, embargo, war, civil war and terrorism.”
Ingram commented in the report, “This is by far the most unstable, tenuous, deteriorating risk environment I’ve ever seen.”
Erin is the managing editor of Advisen’s Front Page News. She has been covering property-casualty insurance since 2000. Previously, Erin served as editor-in-chief of The Standard, New England’s Insurance Weekly. Erin is based in Boston, Mass. Contact Erin at [email protected].
