RISK: Instability caused by low oil prices top risks in emerging markets

Extremist groups may be more effective because host countries can’t absorb economic shocks

Instability in oil-producing countries because of low oil prices tops geo-political risks this year, Aon’s 2015 Political Risk Map reports.

Extremist groups such as ISIS and Boko Haram may be more effective because many countries in Africa and the Middle East can’t absorb economic shocks.

Egypt, Tunisia and Morocco may benefit from cheaper oil imports but also face security risks because of political instability in Iraq, Libya and Syria.

“By using the latest data and analytics, the political risk map helps organisations determine their emerging market investment strategies,” says Aon’s head of political risk Matthew Shires. “Businesses need to constantly monitor their exposure to political risk such as the impact of oil price uncertainty and political instability.”

Copyright © 2017 Transcontinental Media G.P.
Transcontinental Media G.P.