Turbulent 2015 predicted by international brokerage

Turbulent 2015 predicted by international brokerage | Insurance Business

Turbulent 2015 predicted by international brokerage
Falling oil prices, geopolitical tensions and separatist movements are some of the biggest international risks facing businesses in 2015 according to a new study released by Marsh.

The 2015 Political Risk Map and Report uses data from Business Monitor International (BMI) to rank each country with an overall risk score based on political risk, macroeconomic risk and operational risk.

Australia ranks alongside the UK, Western Europe and the United States as a very stable nation with Canada and Scandinavia topping the list for stability.

Falling crude oil prices, which are approaching a six year low according to Reuters, will have a major effect on global stability and will be particularly damaging to oil-reliant nations while geopolitical tensions in Europe, the Middle East and North Africa will also have an adverse effect.

Marsh’s Global Credit & Political Risk Practice leader, Evan Freely, stressed that the global outlook requires multinational businesses to have a thorough, all-encompassing risk profile.

“2015 is likely to bring a continuation of heightened political risk in many parts of the world. As such, multinational organizations need to stay ahead of the key issues impacting the countries and regions in which they operate and have broad, multi-hazard plans in place to protect their strategic interests.”

The report notes that the coming years represent a time of upheavel with 2017 highlighted as a year of change thanks to a new US president taking office, a possible EU referendum in the UK and elections in France, Germany and Australia.