Transport at top of global risk

According to Aon Risk Solutions, the global risk management business of Aon, transport ranks as the top of six targeted business sectors in the Terrorism and Political Violence Map 2015. It is followed by the retail, extractives, critical infrastructure, financial and tourism sectors.

While the global threat posed by Islamic State dominates many of the map findings this year, closer to home, South Africa’s risk level has increased from low to medium and it retains the strikes and civil unrest peril.

“The increase in the risk level is, in large part, due to an increase in strike action and anti-government protests, as well as a breakdown in relations between the governing ANC party and some major trade unions,” says Darlington Munhuwani, regional controller for Aon Sub-Sahara Africa.

“We have not recorded any terrorist attacks over the past 12 months and there have not been official announcements of disruptions or major plots,” he adds.

“Our 2016 Map demonstrates increasing regional instability and a growing spectrum of potential risks on a global scale,” Munhuwani says. “The terrorism threat continues to evolve and is no longer limited to physical damage to infrastructure. It is now broader and includes cyber threats, kidnap and ransom, business interruption as well as event cancellations.

“This presents an increasing challenge for business leaders and risk managers of companies with a global footprint. All these risks must be properly evaluated before a comprehensive terrorism programme is put in place.”

The risk ratings for the 2016 Aon Terrorism and Political Violence Map represent the joint findings and assessments by Aon experts and The Risk Advisory Group, which have produced the Map in collaboration since 2007.

The country risk scores and identified perils are based upon analysis of proprietary empirical data from the preceding year, open source intelligence analysis on the intentions and capabilities of relevant actors, as well as more systemic prevailing trends affecting security and stability around the world.

Each country is assigned a score on a five-point scale that reflects the severity of risk. The scores are weighted to accommodate a wide range of political risk and security variables. The aggregate of these variables reflects the country’s total score. The map shows how these perils relate to Aon insurance products and enables prospective clients to identify the specific risks they should consider.

For more risk solutions, contact Aon’s Isithuthi Account Managers at newbus@aon.co.za or +27 11 944 7000.