Aon warns of political risk in lucrative emerging markets

Chicago -- Investors and financial firms seeking to expand into emerging markets must consider an oft-ignored category of operational risk: political risk, says a team of experts from Aon, based in Chicago. “Investors must make sure that they have the best intelligence available before making decisions, and undertake a thorough assessment of the risks associated with their investments,” says Martin Stone, director of Aon’s counterterrorism and political risk team. “While the attractions of investing in these highly profitable markets are clear, mistakes can be costly. Investors should be properly equipped with the right information, appropriate insurance cover and an on-going risk management strategy.”

Indeed, last year’s bomb attack on the HSBC building in Istanbul in Turkey, and other similar terrorist activities, should remind firms that such risks must be analysed and understood. Justin Priestley, director of Aon’s counterterrorism team, adds: “With terrorist organisations demonstrating global reach, it is vital for companies to be aware of the threats their property and employees face