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Political Risk Grabs the Spotlight

A pushback against globalization has raised the prospect of barriers to international trade.

Businesses always have a lot to worry about, and these days one of the items that’s getting increasing attention is political risk.

Corporations and their risk managers are facing an unprecedented set of surprises that reflect a backlash against globalization in developed countries, including the U.K.’s vote to exit the EU and the U.S.’s election of Donald Trump, who has argued for exiting various trade agreements.

Access to Markets

Stephen Chipman, CEO of Radius, a Boston-based consulting company, said that while multinationals need to be aware of the pushback against globalization, to date it hasn’t affected their operations.

“It’s one thing to have political pushback; it’s another thing to no longer have access to markets,” he said. “As of today, people still have access to markets.