The Knowledge: Political Risks

From the legal minefield of Indonesia to China’s regulatory crackdown, doing business in Asia-Pacific often comes with a heightened set of political risks.

In StrategicRISK’s latest The Knowledge supplement, risk managers rate their top political concerns for doing business in Asia-Pacific. For the free survey results and comprehensive analysis by risk, insurance and political experts, click here.

Highlights of the 16-page report:

• The risk landscape: The regulatory and legal minefield of Asia-Pacific is the top political concern for risk managers in the region. Adverse regulatory or legal changes topped risk managers’ lists of concerns, followed closely by terrorism and license cancellation/amendment (by likelihood and financial impact).
• Regional risks: Risk managers surveyed were asked to pick the countries with the highest perceived political risk for doing business. The top three were: China, Indonesia and Thailand. We zoom in on each country to highlight some of the top concerns in these high risk, high reward regions.
• Abundant capacity and strong competition are contributing to a favourable marketplace for buyers of political risk insurance. But there are still some common misconceptions affecting take-up rates, with only one in five survey respondents using insurance as part of their mitigation for political exposures.
• Managing and mitigating political risk: risk, insurance and political experts have their say.

This is the second The Knowledge supplement produced by StrategicRISK, in association with Zurich.

The first research supplement, on International Risks, can be found here.