Aon Political Risk Map 2012
Political transition raises concerns for business around the world
With tensions continuing in the wake of the Arab Spring, combining with elections in major economies around the world and the lingering Eurozone debt crisis, 2012 is a year of greater global uncertainty – a major concern for business.
Working together, Oxford Analytica's Thought Leadership Practice and Aon have produced a simple yet effective method of assessing political risk in countries and territories around the world, culminating in the 2012 Political Risk Map.
The Political Risk Map provides an indication of overall levels and types of political risk, taking into account six different types of risk in order to produce an overall political risk rating for each country based on a six-point scale:
- Exchange Transfer: The risk of investors being unable to make payments in contract currency as a result of the imposition of local currency controls
- Sovereign Non-payment: The risk of failure on the part of a government to fulfil its loan obligations or honour other business commitments
- Political Interference: The risk of government intervention in the economy or other policy areas that negatively affects business interests; e.g., nationalization and expropriation
- Supply Chain Disruption: The risk of disruption to the flow of goods and/or services into or out of a country as a result of political, social, economic or environmental instability
- Legal and Regulatory: The risk of financial or reputational loss as a result of difficulties in complying with a host country’s laws, regulations or codes
- Political Violence: The risk of strikes, riots, civil commotion, terrorism, war or civil war
This year, Oxford Analytica assessed 167 countries and territories to be included in the Political Risk Map. The vast majority of the work was conducted by members of our in-house analysis team, with additional contributions from members of our advisory team and external experts. The comments and recommendations provided by Oxford Analytica were relayed to Aon, who used the data to produce an interactive online map, as well as a printed version.
