Financial crisis resulted in heightened political risk globally: Aon

The global financial crisis has increased political risk in countries that traditionally have had very low levels of risk, according to Aon’s Political Risk Map.
Fall-out from the financial crisis has resulted in Iceland becoming the first Western European country to be downgraded to medium, Aon said.
Globally, the level of political risk has risen in more countries than it has declined, with nineteen countries being downgraded and 11 upgraded, according to the study.
A downgrade indicates the severity of the risk has heightened, while an upgrade indicates the risk is less severe, with countries ranked on a six-point scale from low risk to very high risk.
“The perceived or actual risk of sovereign non-payment continues to be an issue in countries across the globe,” Beverley Marsden, associate director of Aon Risk Solutions’ Crisis Management Practice, explained.
“For example, we have seen 13 island nations move into a higher risk category this year because of the effect of a decline in tourism on their economy.”
Marsden also noted the positive affect globalization has had on political and economical stability. Many countries previously designated as medium-high or high have taken advantage of global trade links and have seen political risk levels decrease, she said.