Political, natcats and cyber ranked as top risks for companies with overseas operations
Amrae president Gilbert Canameras (pictured) has warned against three major risks that could affect businesses with operations overseas.
Political risks, natural catastrophes and cyber attacks were ranked as the biggest threats to multinational businesses.
Speaking to StrategicRISK, he said that in an increasingly globalised business world, risk managers must re-examine their approach to political risk.
He said: “We live in a world that is constantly changing and this means that we have to reconsider what ‘political risk’ actually is.
“This risk increasingly refers to threats that lead to instability. Often, the news will feature events about instability, both inside the country [where there is a political crisis] and outside the country. This is a permanent risk.”
On natcats, he warned that as the production line and supply chain becomes increasingly complex, the impact of a natural catastrophe is greater than ever before, with the threat stretching beyond financial damage.
Cyber threats, he said, are “new and challenging” and risk professionals are yet to understand how best to fully protect against them.
He added: “Risk managers must analyse the global risks that could affect their companies. It is not only about assessing the risks [that affect the country in which the company is based].