X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Stock illustration: Global gears working together

Earlier this month, Marsh Specialty released its “Political Risk Report 2022.” Not surprisingly, the area of risk that experienced the most growth is war and civil war—although for most of the world, the probability of such an event remains low.

Marsh generates its geopolitical risk ratings using a proprietary, algorithm-based modeling system that incorporates more than 200 international indices across 197 countries. The model scores each risk on a scale of 0.1 to 10.0, where 0.1 indicates the lowest possible risk and 10.0 the highest.

The world’s most prevalent political risks in 2022, according to Marsh’s model, are strikes, riots, and civil commotion, followed by terrorism and contractual agreement repudiation. For the United States, the model gave the risk of strikes, riots, and civil commotion a score of 5.0, terrorism a score of 4.4, and contractual agreement repudiation a score of 4.1. Meanwhile, war and civil war and country economic risk both rated 3.0. Sovereign credit risk (1.0), expropriation (1.1), and currency inconvertibility and transfer risk (1.4) received the lowest risk ratings for U.S. businesses.

 

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2022 ALM Global, LLC. All Rights Reserved.