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Finance
Mortgages, pensions, loans, shares, savings |
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The political risk in international finance
Reading exporters face increased political and economic risks in 2008 when trading with half of the 50 largest global economies, including China, Brazil and Russia. This is according to a new risk map from Aon, the UK’s leading insurance broker and risk management consultant.
The 2008 Political & Economic Risk Map highlights how exporters’ businesses could be affected when trading in certain countries through war, terrorism, political interference or piracy.
Andrew Child, UK & multinational director for Aon Trade Credit UK in Reading, commented: “Over the last year, we've seen Reading businesses increasingly export and invest in emerging markets such as Eastern Europe, China, India and the Middle East. This is particularly true for the electronics, food & drink, construction and automotive sectors. At the same time, I have noted a significant increase in the number of CEOs and CFOs who are seeking a greater understanding of how their businesses are at risk in an increasingly complex global environment versus ten years ago.
"As the global business landscape is constantly changing, the Political and Economic Risk Map provides analytical tools to assess how political and economic risk will impact sustainable growth, continuity and profitability. For example, when deliberating transactions with new or existing partners, companies can use the research, alongside buyer information, to protect themselves from bad debt through credit insurance or by working with banking partners to obtain early or protected payment.”
Meanwhile in the UK, the terrorism threat remains a factor in light of last year’s attempted car bombings in London and Glasgow, while the country has been placed on Credit Risk ‘negative watch’ due to its exposure to the sub-prime credit crunch.
www.aon.co.uk
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