Political Risk

Emerging markets continue to be attractive for businesses seeking alternative areas for growth. However, in less mature economies assets, contracts and loans can be adversely affected by government actions. Supply chains are becoming increasingly more vulnerable. Aon's Political Risk Map noted an almost 50% increase in supply chain disruption due to government embargoes, interference and strikes, riots, and civil commotion.

Political Risk Management

Aon political risk experts use a combination of market experience, innovative analysis tools and tailored risk transfer programs to help you minimise and manage your exposure to risks.

Unforeseen political events can lead to:

• Confiscation, expropriation or nationalisation of assets
• Export/import embargoes or cancellation of export/import licenses
• Physical damage to assets from political violence
• Termination of or default on contracts
• Non-payment or moratorium due to exchange transfer and currency inconvertibility
• Non delivery/shipment of goods
• Calling of on-demand bid or contract bonds and guarantees for unfair or political reasons
• Forced abandonment or divestiture
• Non-payment by government and/or government owned entities of trade related debt to financial institutions

2020 Risk Maps COVID-19 Webinar