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Global Risks Index Pinpoints Country Risks to Multi-Nationals
London
Monday, July 13, 2009
A new global study, released by specialist risk consultancy, Maplecroft, has produced a definitive ranking of countries with the most hazardous business environments.
The Global Risks Index (GRI) analyses 26 different risk indices for 163 countries and identifies areas of high vulnerability for organisations with global footprints. Somalia, Sudan, DR Congo, Chad, Afghanistan, Ethiopia, Myanmar, Nigeria and Burundi are rated "extreme risk" and top the ranking, whilst the most challenging nations for the business community include, Pakistan (16), India (27) Indonesia (32), Iran (35) and the Philippines (41), which all are at high risk.
Maplecroft has designed the index for multi-national organisations that are increasingly confronted by complex global risks traditionally seen as external to business. It provides comparable risk intelligence for each country across 10 key areas: energy security, corporate governance and corruption, emerging powers, terrorism and conflict, macroeconomics, government risk and geopolitics, climate change and environment, health, safety and pandemics, natural hazards and societal and human rights risk.
The GRI will enable business to identify specific areas of high risk in their global value chains, giving them the ability to manage and mitigate risk, improve business performance and enhance strategic investment and corporate social responsibility planning.
"For any business, monitoring key global risks is critical to ensuring profitable investments," said Maplecroft's Chief Executive, Alyson Warhurst. "Global risk management proficiency that is both informed and proactive, combined with responsible business practice, can lead to an improvement in performance in countries of high and extreme risk. This can contribute to business opportunities and reputational leadership on the part of business, as well as to ensure a long term social licence to operate."
Of the emerging BRICS economies (Brazil, Russia, India, China and South Africa), India is most vulnerable and of distinct importance to business because of its huge role in global supply chains. High population density; security risks posed by Maoist and Islamist violence; resource security – relating to energy, water and food, and human rights violations, all contribute to its poor ranking. Brazil (92), Russia (69), China (70) and South Africa (87) are all rated medium risk.
China's risks are predominantly derived from a lack of resource security and the longer term effects of climate change. Competition for land and water are further compounded by increasing urbanisation. However, China is making significant strategic investments in access to land and resources overseas to mitigate some of these effects.
The Global Risks Index is presented on-line, in country by country scorecards and maps. Each country scorecard provides a summary of key demographic, economic and political information, a global and regional map and scores for each of the 26 global risks indices and for seven aggregate clusters on: macroeconomic risk; security risk; governance risk; resource security; climate change, pandemics and infectious disease risk and societal resilience.
www.maplecroft.com
Maplecroft is the leading source of global risks intelligence. We analyse, index and map over 100 global risks to help companies identify areas of high risk and secure the insight they need to manage and mitigate risk sustainably. Our comprehensive portfolio of data sets, risk indices, interactive maps and narrative reports are complimented by an award-winning reporting service and a unique company rating system, measuring corporate exposure to risks across supply chains, operations and distribution networks
The Global Risks Index (GRI) analyses 26 different risk indices for 163 countries and identifies areas of high vulnerability for organisations with global footprints. Somalia, Sudan, DR Congo, Chad, Afghanistan, Ethiopia, Myanmar, Nigeria and Burundi are rated "extreme risk" and top the ranking, whilst the most challenging nations for the business community include, Pakistan (16), India (27) Indonesia (32), Iran (35) and the Philippines (41), which all are at high risk.
Maplecroft has designed the index for multi-national organisations that are increasingly confronted by complex global risks traditionally seen as external to business. It provides comparable risk intelligence for each country across 10 key areas: energy security, corporate governance and corruption, emerging powers, terrorism and conflict, macroeconomics, government risk and geopolitics, climate change and environment, health, safety and pandemics, natural hazards and societal and human rights risk.
The GRI will enable business to identify specific areas of high risk in their global value chains, giving them the ability to manage and mitigate risk, improve business performance and enhance strategic investment and corporate social responsibility planning.
"For any business, monitoring key global risks is critical to ensuring profitable investments," said Maplecroft's Chief Executive, Alyson Warhurst. "Global risk management proficiency that is both informed and proactive, combined with responsible business practice, can lead to an improvement in performance in countries of high and extreme risk. This can contribute to business opportunities and reputational leadership on the part of business, as well as to ensure a long term social licence to operate."
Of the emerging BRICS economies (Brazil, Russia, India, China and South Africa), India is most vulnerable and of distinct importance to business because of its huge role in global supply chains. High population density; security risks posed by Maoist and Islamist violence; resource security – relating to energy, water and food, and human rights violations, all contribute to its poor ranking. Brazil (92), Russia (69), China (70) and South Africa (87) are all rated medium risk.
China's risks are predominantly derived from a lack of resource security and the longer term effects of climate change. Competition for land and water are further compounded by increasing urbanisation. However, China is making significant strategic investments in access to land and resources overseas to mitigate some of these effects.
The Global Risks Index is presented on-line, in country by country scorecards and maps. Each country scorecard provides a summary of key demographic, economic and political information, a global and regional map and scores for each of the 26 global risks indices and for seven aggregate clusters on: macroeconomic risk; security risk; governance risk; resource security; climate change, pandemics and infectious disease risk and societal resilience.
www.maplecroft.com
Maplecroft is the leading source of global risks intelligence. We analyse, index and map over 100 global risks to help companies identify areas of high risk and secure the insight they need to manage and mitigate risk sustainably. Our comprehensive portfolio of data sets, risk indices, interactive maps and narrative reports are complimented by an award-winning reporting service and a unique company rating system, measuring corporate exposure to risks across supply chains, operations and distribution networks
Jason McGeown
Communications Manager
Maplecroft
Bath
+44 (0) 1225 42 0000
