Political Risk Index
Willis
The Issue
Willis, a global leader in the provision of political risk insurance, needed a means to monitor and demonstrate the extent of ongoing changes to the risk environment in a range of developing markets.
The Approach
We provide a tailored political risk index covering 40 emerging markets. Drawing on country experts from our network, the index provides an overall figure for each country that combines scoring for five risks: expropriation, political violence, terrorism, exchange transfer risk and sovereign default. The ongoing project, which updates the index several times a year, couples statistical research with qualitative analysis to produce a comprehensive risk assessment for each country.
The Result
The company now publishes the Willis Political Risk Index as a means of enhancing its brand among current and prospective clients.
Economic Risk Scenarios
A global financial services firm
The Issue
A global financial services firm sought input for a strategic realignment of its operations in the United Kingdom.
The Approach
We used interviews with an expert panel to identify possible risk factors for both the UK economy as a whole and for the regions and sectors in which the clients was particularly interested. Combining the results of these interviews with analysis of macroeconomic and sectoral data enabled us to provide a final set of risk factors with the potential to affect the client’s UK operations.
The Result
At the workshop to present the report, we demonstrated how these risk factors could be matched with an appropriate early warning mechanism to alert the client to a rise in the risk of negative developments.
Japan Insurance Market
Metlife
The Issue
A global insurance company wanted to expand its operations into Japan.
The Approach
We used an expert panel made up of insurance analysts, academics and industry practitioners to assess Japan’s life and non-life insurance markets by looking at growth and profitability trends, distribution channels and the competitive environment. The panel’s analysis was supplemented by in-country interviews with stakeholders in the insurance industry and specialists in relevant areas such as demographics, healthcare and social services.
The Result
Our analysis contributed to Metlife’s decision to purchase a significant competitor in Japan.
Key Sector Outlooks
A leading financial institution
The Issue
A leading financial services group asked us to assess the medium-term risk outlook for four key economic sectors: oil & gas, metals & mining, infrastructure and telecoms.
The Approach
For each of these sectors, we used qualitative and quantitative evidence to produce a series of interlinked studies which provided an overview of demand and supply drivers as well as developing trends; a global outlook; a special focus on several regional areas of particular interest to the client; and an assessment of key operational and political risks. The analysis used both qualitative and quantitative evidence. The service included two quarterly updates to monitor the trends and risks identified in the original reports.
The Result
The reports were fed into the financial institution's risk department, helping the firm to make informed decisions on risk mitigation.
India Market Attractiveness
Ernst & Young
The Issue
Ernst & Young asked us to examine the factors behind India’s growing attractiveness as a destination for foreign investors, and to analyse the nature of foreign investment across the country’s sectors, industries and states.
The Approach
We provided insight into the objectives of foreign investors who consider India, highlighted the attractions of leading industries and detailed the strengths of India’s most prosperous states. The report compared investor perceptions of India’s investment climate with trends revealed by close analysis of statistical data.
The Result
Our report helped Ernst & Young to draw attention to India’s attractiveness as a fast-growing investment destination.
