Operating Internationally? Here are some risks you may wish to consider...
It is vital for organisations with an international footprint to ensure that the myriad of risks beyond the coronavirus remain a focus:
Both domestic and international firms are exposed to risks, as indeed are we all.
In the face of rising insurance premiums and shrinking capacity continued efforts to increase resilience are hugely important.
As brokers, we are experienced in assisting organisations in assessing their exposures and developing a meaningful plan of action.
Here are 6 Key Risk Areas to be aware of when doing international trade:
1. Natural Disasters
The increasing frequency of extreme weather events with natural disasters becoming more pronounced both in terms of frequency and severity. Building resilience to natural disasters is a significant exercise.
2. Faceless Threats
In a context of increased isolationism, and more time spent online, individuals will become increasingly disconnected from normative community activity with a comparative increase in crime and incidents of violence perpetrated by ‘faceless’ lone actors.
3. Supply Chain Disruption
The highly complex logistical webs that make up the global economy have predominantly been designed with cost and efficiency in mind. Unless resilience starts to be factored into these considerations, disruption to supply chains will remain a significant operational risk factor.
4. Cyber Attacks
No longer just an inconvenience, they are potentially calamitous. More worrisome, attacks targeting government infrastructure are on the rise, and any cyber breaches in this space could have unprecedented implications
5. Decay of the ‘social contract’
Mounting frustrations over inequality, cynicism of perceived corrupt political elites, and distrust of wider civil society including the media and big business amid the pandemic of ‘Fake News’ are likely to lead to increased public agitation and worsening levels of political cohesion.
6. Erosion of domestic political cohesion fueled by social media
Complex political issues find themselves being misrepresented in the form of a ‘post’, ‘share’, or ‘tweet’.
This dynamic will become more prevalent in 2021 and result in even more social and political divisiveness, with rising levels of political risk in locations where the ‘culture war’ is most pronounced.
The advice on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs. You must decide whether or not it is appropriate, in light of your own circumstances, to act on this advice. You should ensure you obtain and consider the Product Disclosure Statement for the policy before you make any decision to acquire it.