Double jeopardy: the areas of security and political risk

Political and security risks are developing against a backdrop of uneven and uncertain economic recovery, with the probability of regime change in some of the world’s most prominent political hotspots, according to a new risk forecast.

Risk Map 2010, launched by business risk consultancy Control Risks, focuses on geopolitical and security risks of particular interest to multinational businesses for the coming year, rating 173 countries by political and security risk.

The report highlighted that China could expand its commercial interests as its economy has emerged relatively unscathed from the financial crisis. But it will need to look beyond the extractive sectors to preserve its dominant investment position among many of its commercial partners, the report added.

Control Risks’ chief executive, Richard Fenning, said: “During 2010, organisations will also need to consider the potential implications of the changing nature of the domestic terrorist threat, which, while becoming more low-tech, is also becoming more unpredictable.”