Instead of targeted and 'just-in-time' political risk management, Marsh advocates a multi-country and multi-hazard approach to managing political risk. This includes the purchase of broad, multi-country political risk insurance policies and detailed planning to ensure business continuity and the safety of employees and key assets.

In its report, Marsh suggests that organizations doing business in countries with high levels of political risk should:

• Review their business interruption and supply chain resiliency plans, evaluate the impact of potential political risk events on their own operations and on those of their customers and suppliers.
• Ensure that they can communicate potential problems to employees, customers, and suppliers, and review crisis communication plans to ensure the safety of employees.
• Review their credit risks and credit control policies and procedures. Ongoing financial monitoring can identify strengths and weaknesses in their credit risk management processes, enabling firms to avoid bad debts and improve cash flow.

“The proliferation of social media will likely accelerate in the years to come, at times facilitating protest movements, including in some countries traditionally deemed 'safe,'” added Mr. Freely. “It is vital that businesses recognize the added risks that social media can present and manage those risks accordingly.”